The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
West Midlands; Herefordshire; Worcestershire and Warwickshire
Location of affected unit(s)
Birmingham
Sector
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.1 - Manufacture of motor vehicles
2,000 - 6,000 jobs Number of planned job losses
Announcement Date
24 February 2005
Employment effect (start)
Foreseen end date
Description
Some 2,000 jobs at MG Rover's Midlands plant may be cut if investment in the firm by a Chinese car maker goes ahead. Shanghai Automotive Industry Corp plans to shift production of the Rover 25 to China and export it to the UK, sources close to the negotiations said. The move reportedly threatens a third of the Rover's 6,000-strong workforce.
A tie-up, seen as Rover's last chance to save its Longbridge plant, has being pushed by UK Chancellor Gordon Brown.
The Independent on Sunday has obtained details of a letter, jointly signed by MG Rover's chief executive, Kevin Howe, and the SAIC president, Zhao Feng Gao. The letter says that the long- awaited joint venture should be signed on 20 April 2005. It also confirms there will be significant UK job losses, saying 35% of the workforce at MG Rover's Longbridge plant - around 2,300 jobs - would be cut once the deal was signed.
By April 2005 the situation worsened considerably when MG Rover went into administration as a result of the failed talks, putting the future of MG Rover's Longbridge plant and 6,000 workers at risk.
Administrators said some potential buyers had already expressed interest.
A report by the MG Rover Task Force and Advantage West Midlands published in early August 2005 has found that more than 1,800 former MG Rover workers have found employment. As well as the 1,800 new jobs, another 1,600 have started training courses and another 1,300 are about to start courses. But the report says that at least 1,000 people were still out of work and other companies were struggling because of the closure.
Sources
6 March 2005: Independent on Sunday
25 February 2005: BBC News
25 February 2005: The Financial Times
8 April 2005: The Guardian
Citation
Eurofound (2005), MG Rover, Closure in United Kingdom, factsheet number 61161, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/61161.
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