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daily dose of rover

To: triumphs@autox.team.net
Subject: daily dose of rover
From: GuyotLeonF@aol.com
Date: Thu, 23 Mar 2000 16:07:59 EST

By Alan Jones, Industrial Correspondent, PA News in Munich 

German car giant BMW today responded to anger over its shock decision to sell 
off Rover by agreeing to help minimise job losses, after a government 
minister turned up for talks in a gleaming Rover 75. 

Trade and Industry Secretary Stephen Byers stepped out of the dark blue 
luxury car - production of which has been halved because of the Rover crisis 
- for two hours of "positive" talks with BWM bosses at the company's head 
office in Munich. 

BMW is believed to have been stung by the reaction in the UK to its decision 
a week ago to break up Rover, which has included calls for a boycott of the 
German car. 

Its chairman, Professor Joachim Milberg held a one-to-one meeting with Mr 
Byers for an hour and immediately agreed to work with the task force which 
the government has set up to help regenerate the West Midlands in the wake of 
expected heavy job losses at the huge Longbridge factory in Birmingham. 

There is still no official estimate of the likely redundancies but BMW today 
described reports that up to 50,000 workers will be hit as a "dramatic over 
estimate." 

Mr Byers told PA News after his meeting that BMW was "very positive" about 
wanting to help the task force and keep job losses to as few as possible. 

"It was a very constructive meeting and BMW has agreed that we now need to 
plan ahead and look to the future. They will do all they can to minimise job 
losses and co-operate with the task force." 

Mr Byers said he believed BMW was very close to reaching an agreement to sell 
the Rover Research and Development centre at Gaydon in Warwickshire to 
American rival Ford. 

The site carries out work for the Landrover factory in Solihull, which Ford 
is also buying, so there would be a "logic" to the deal. 

Mr Byers said the two sides had agreed today that the past week had been 
"very difficult" - especially for the Rover workforce - but he was keen to 
move on with practical steps to help create new jobs. 

Although unions have not given up hope of a new buyer being found to keep the 
Rover group together, it now seems that the break up will go ahead, with 
Longbridge being sold to venture capitalists Alchemy Partners. 

Mr Byers, who was accompanied by the British Ambassador in Berlin, Sir Paul 
Lever and the head of the task force Alex Stephenson, said he did not want to 
"hark back" to the events of the past seven days. 

"We have to look to the future - that is what the Government wants to do. We 
want to engage in dialogue with BMW as the best way of helping communities 
affected by this decision. I am hopeful that we can retrieve something from 
this very difficult situation." 

Mr Byers admitted there will be job losses but he accepts that BMW took a 
commercial decision in the face of mounting losses at Rover. 

The full extent of the losses will be revealed next week when BMW publishes 
its annual figures, but industry analysts have suggested that the Rover 
losses rose to £3 million a day before last week's decision to sell it. 

Mr Stephenson will meet BMW and Rover officials in the next week to discuss 
details of the support promised today, which could include cash as well as 
part of the Longbridge site being handed over for regeneration. 

The task force will report within the next few weeks on the scale of the 
likely job losses at Longbridge and among suppliers as well as the chances of 
attracting new investment. 

"It has been a strong and positive outcome today and we now need to work on 
the details," said Mr Stephenson, who will chair the next meeting of the task 
force on Saturday. 

BMW spokesman Axel Obermueller said no-one knew how many jobs would be lost 
but it was "nowhere near" 50,000. 

Sir Ken Jackson, general secretary of the Amalgamated Engineering and 
Electrical Union, said he hoped the visit by Mr Byers would be followed by 
positive moves from BMW to help regenerate the West Midlands. 

"What we now need is for BMW, the unions and the government to sit down 
together to map out a way forward and try to salvage something from the 
wreckage." 

Around 12 West Midlands MPs today vented their anger at BMW chiefs at a 
private meeting in the Commons. 

Afterwards, Birmingham Northfield MP Richard Burden said: "They were left in 
no doubt about the real concern that people have got for the consequences of 
the decision they have made. 

"They faced some fairly hard questions about what led up to their decision to 
sell Rover Group. 

"They faced some fairly hard questions about whether they had marketed Rover 
properly, particularly the Rover 75." 

Léon



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