motor industry - rover dismantled
WORKERS, APR 2005 ISSUE
ON HIS recent visit to China Gordon Brown pontificated about the deal between Rover and Shanghai Automotive Industry Corporation. It was hinted that China will be able to defer VAT payments on production for an unquantified number of years — worth tens of millions of pounds.
SAIC then announced a further investment into Rover of £130 million — not £1 billion as had been trailed. China has bought the design, the technology and production of Rover. Powertrain engine production is already moving to China. This piecemeal transfer will reduce Rover either to a dealership or at best a badge fitting company. How long Longbridge and other Rover sites, with 6,500 workers, can survive is debatable. Safe perhaps until the May General Election but what then?