MG Rover plans production pause

[Ari]

Sad, but not a surprise given they're still pedalling rehashed mid '90s cars and wasting development skills/money on a supercar that will sell in tiny numbers if at all.

Also note this " This is reported to include a £15.1m payout to five directors in 2002. " £3M each for running a failing company...? Ho hum.

MG Rover plans production pause

The Rover 25 is one of three models affected

Car maker MG Rover has confirmed it is to halt production for three days due to low sales.

The Midlands manufacturer is to shut down work on three models on Wednesday, Thursday and Friday this week.

Those cars affected are the Rover 25, 45 and 75, and the move comes as the company falls well behind its 200,000 vehicles a year sales target.

The Phoenix consortium bought MG Rover from BMW back in 2000, but has been hampered by a lack of investment funds.

'Standard practice'

A spokeswoman for MG Rover said the move at its Longbridge base would "balance dealers' stock levels".

She added: "A small halt in production at this time of the year is fairly standard practice in manufacturing, where a number of companies have an elongated Christmas shut-down."

MG Rover has seen sales slump by almost 50% in the past three weeks, not helped by reports of a £70m pensions deficit, and accusations by trade unions that the company's directors are giving themselves excessive pay deals.

This is reported to include a £15.1m payout to five directors in 2002.

According to a number of sources, representatives from the Transport and General Workers have been asked by the company not to talk up the crisis, because it is hurting sales.

Off target

According to industry figures from the Society of Motor Manufacturers and Traders, MG Rover sold 85,567 cars in the year to the end of October, way off its target of hitting 200,000 by the end of the year.

The company also announced a £95m loss in its recently released 2002 accounts.

This has hit its ability to invest in new models.

MG Rover's forthcoming new small car, the City Rover, for example, is based on Indian vehicle Tata Indica, and will be made by Tata in the western Indian state of Maharashtra.