Rover has begun its latest
rise from the ashes following the Phoenix Consortium's agreement to buy the firm
from BMW for just £10.
They will be given £500
million by BMW to take over the troubled firm.
Former Rover Chief executive
John Towers and his partners spent last night finishing the detail of
Speaking at a press conference
today he said that fewer than 1,000 jobs will be lost at Longbridge.
"We have a robust business plan. There has been
a lot of inaccurate reporting about the financial position.
"I expect Rover to be in profit within two
million of funding was secured from American bank First National, who
will have the rights to unsold Rover stock across the world.
announced a huge sales increase last month, giving it a huge increase
in market share.
and Industry Secretary Stephen Byers said there would still be help
for the region to help it cope with any job losses.
said the government's role had been as a facilitator, bringing the
Phoenix Consortium and BMW together.
in the House of Commons, Mr Byers pledged that the Government's task
force would remain in place and the £129 million would remain
available for economic regeneration and job creation projects in the
government's main concern has been the workers, Rover's suppliers
and the communities affected.
role of government is not to run commercial negotiations between the
The sale means that the Rover
marque will stay in existence and will become a British-owned company
Production of the Rover 75
will be switched from the Cowley plant in Oxford to Longbridge in
The sale means the short-term future
of mass production at the troubled firm is guaranteed. But car experts
warned that Phoenix would face an uphill struggle to development new
models to keep Rover competitive.
Mr Byers said the government
had not been asked for money by the Phonix Consortium.
Workers at the Longbridge
plant celebrated at the news today. BMW had warned that the
loss-making plant would be closed if a buyer could not be found within
Roverís future was thought
to be jeopardised when talks between BMW and Alchemy Partners over its
sale broke down ten days ago.
But the Phoenix group has shown
the German company that it has enough funds to complete the