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Rover deal with Shanghai Automotive collapses

[日期:2007-02-27]   [字体: ]

Rover deal with Shanghai Automotive collapses

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Speculation about MG Rover's future has been going on for months. In the past weeks, it reached critical levels as senior DTI officials arrived in China for crisis talks with the Shanghai Automotive car group. A partnership with the Chinese company was Rover's last hope. They'd aGREed in principle to work together on new models, with Rover swapping information on technology for much needed cash. But as the talks went on, it became clear that the Chinese were deeply concerned about the state of Rover's finances. They didn't want to take on responsibility for hundreds of millions of pounds owed to Rover's former owners, BMW, and to the pension fund. By the end, even a government offer of a one hundred million pound bridging loan wasn't enough to keep them interested. The government has always said the loan was dependent on the deal going ahead. Without Shanghai Automotive's commitment, it would have been tantamount to, throwing good money after bad.
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