AM Online

MG Rover closure – less impact than feared

More than 1,800 former MG Rover workers have already found new employment, a new report reveals.

The MG Rover Task Force assessment also found that the firm's collapse is not as big a blow to the West Midlands economy as had been feared.

It had been thought that the end of car production at Longbridge would result in a further 13,000 job losses.

But 1,832 former MG Rover staff have now got new jobs. And 164 component companies have received cash through the wage replacement scheme.

The system has safeguarded the short-term future of 2,983 other workers.MG Rover Task Force and regional development agency chief Nick Paul said: "I am very encouraged the report believes that the worst case scenario is unlikely to happen.

"There remains a lot to do but much has already been achieved."

He added that, of the nearly 6,000 people laid off, "a further 1,600 had started training courses, with 1,300 more about to start".

"Well over two-thirds of the workforce is either in work, in training or about to start training."

While there may be more job losses, there were "encouraging" signs that "companies may be able to mitigate the worst effects of MG Rover's closure on their business".

But Paul also acknowledged that companies are still "really stretched" by MG Rover's closure. There are still more than 1,000 former MG Rover workers who need help to get into work or training.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.