Mark Milner 

Rover’s next step on long road to China

Union leaders are expected to meet MG Rover's bosses next week amid mounting optimism about the car maker's make or break alliance with China's Shanghai Automotive Industry Corporation.
  
  


Union leaders are expected to meet MG Rover's bosses next week amid mounting optimism about the car maker's make or break alliance with China's Shanghai Automotive Industry Corporation.

Industry sources say the meeting is one of a regular series between management and unions. However, union officials are expected to take the opportunity to question the firm about the progress of the discussions with SAIC and reports of up to 3,000 job losses.

MG Rover and SAIC have been negotiating for months over the structure of a joint venture, which is expected to garner much-needed investment for new models at MG Rover's Longbridge plant.

Yesterday a spokesman from SAIC's UK public relations firm confirmed negotiations were on track and had the backing of the Chinese government. "SAIC confirms it is at an advanced stage of detailed negotiations with MG Rover of a joint venture which will safeguard and secure car manufacturing at Longbridge. Contrary to speculation, these negotiations have the support of the Chinese government."

Tony Woodley, the general secretary of the TGWU, told Radio 4's Today Programme that the joint venture was "the last possible lifeline that will keep this still very British giant car company alive and going".

On the possibility of job losses Mr Woodley said: "There is only one game in town here. Our members understand that without the investment and without Shanghai Automotive, there would be no plant and absolutely no jobs." He said he believed the deal was on track "but at this delicate stage it is a question of who gets what as far as production is concerned".

There has been speculation that Rover 75 production could be moved to China, though it is understood it will be made in both countries.

Tony Blair has already written to the Chinese authorities in support of the deal, and yesterday Mr Woodley called on the government to continue its backing. "What we have got to do is to encourage our government ... to make sure they give the support they are entitled to do under European legislation and to preserve as many of the manufacturing jobs in our country as is humanly possible."

 

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