Rover Goes Bust

Let's face it - it was on the cards. It was unlikely Rover's jaded models 25 and 45 could face the competition and survive, let alone win. The CityRover was a disaster. The 75 is a fine car but this alone could not secure profit and investment in new models.

Back in 2000 Jon Moulton offered to buy the ailing company. He had plans to scale down Rover and focus on the MG brand. Some two thirds of the Rover 6000 workers would have had to go and some assets would have been sold under his plan. He was branded a ruthless asset-stripping capitalist and sent off when BMW came under pressure from the Government and the unions. The full article is here.

So, 5000 redundancies will be in the post within the next week or so. Remaining 1000 workers will continue work to complete pending orders. When this is finished, the last man to leave will turn out the lights. Was this necessary? At least the MG brand and a third of the workforce could’ve been saved had only the company been sold to Moulton. The cost of 4000 redundancies would’ve been born by Moulton. Now the redundancy of the entire workforce will fall on the back of the taxpayer.

Well, is this not another fine example of what happens when saving jobs becomes the priority? Was the victory of the Government and the workers over Moulton not pyrrhic?