BBC News: Brown push for Rover-China tie-up



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送交者: Europeanese 于 2005-2-22, 04:33:47:

Brown push for Rover-China tie-up

The deal is awaiting approval from the Chinese authorities
Chancellor Gordon Brown has met Chinese authorities in Shanghai to push the case for a tie-up between MG Rover and Shanghai Automotive Industry Corp.
The deal with the state-owned car company is seen as the last chance to safeguard the future of Rover's West Midlands plant and its 6,000 workers.

On Monday, Mr Brown said he hoped a deal would be agreed soon.

Rover bosses are "confident" a deal will be signed in March or early April, after approval from the authorities.

After an agreement is reached, production is expected to start in China in 2007, senior Rover sources told the BBC.

Deal 'near'

Shanghai Automotive's proposed £1bn investment in Rover is awaiting approval by its owner, the Shanghai city government, and by the National Development and Reform Commission, which oversees foreign investment by Chinese firms.

On Monday, Mr Brown held talks in Bejing with Chinese Premier Wen Jiabao and Finance Minister Jin Renqing about the deal.

This is the last chance saloon for Rover and almost 50,000 component workers in and around the West Midlands

Tony Woodley, TGWU

BBC Business editor Jeff Randall said that Rover was making "optimistic noises" about the deal, adding an agreement had been reached between the two companies which could crank up production levels at Rover's Longbridge plant to levels seen 10 years ago.

He added a senior Rover source had told him: "We're going to do this deal, let's be sure about that, our lawyers are in China writing contracts now."

Malcolm Harbour, MEP for the West Midlands and former director of marketing at Rover, told BBC Radio Five Live that he believes the deal is close to being finalised.

"The planning and in fact quite a lot of the implementation of that deal is already going through," he said.

He added that his former Rover colleagues had "every confidence" that the deal would be sealed, adding that a joint production plan was already in place and preparations for it were underway.

"I understand there are people from Rover working over in China in preparation for a Rover model in China," Mr Harbour said.

Job worries

But, while the company's Longbridge factory is expected to be saved, the BBC's Mr Randall said details were "patchy" and any joint venture would inevitably lead to job losses.

Transport & General Worker's Union general secretary Tony Woodley added he was resigned to job cuts.

"This is the last chance saloon for Rover and almost 50,000 component workers in and around the West Midlands.

"There's never been a merger which has not seen job cuts and efficiencies," he said.





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