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Friday April 08, 10:02
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UK Rover fails to grab Chinese partner, 6,000 jobs may be lost
(by Olivia Cohen)
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About 6,000 jobs may be lost after the failure of the UK carmaker MG Rover to be picked up by the potential Chinese partner on Thursday, according to the governement’s report.
The bankruptcy protection (receivership) did not help the company to survive after its potential Chinese partner refused to invest in the company, the UK’s Trade and Industry Secretary Patricia Hewitt said. "MG Rover has announced that their board has decided to call in the receivers. This is a devastating blow to everybody involved -- the workers and their families, the company’s suppliers and the wider community," she added.
The company also failed to take a 100 million pound loan amid the refusal from the Chinese company, Shanghai Automotive Industry Corp. (SAIC). "This is an issue between the government and MG Rover," said its spokesman. SAIC also added that the company was not ready to invest in the British carmaker until its holding company «were able to secure the solvency of MG Rover for the period of 2 years.»
The collapse may hurt much more than just 6,000 jobs with the thousands of supply jobs that can be put at risk.
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