Talks setback for Rover

The prospects of saving MG Rover looked doomed today after Shanghai Automotive was understood to have decided not to continue talks aimed at securing the UK carmaker’s future.

The prospects of saving MG Rover looked doomed today after Shanghai Automotive was understood to have decided not to continue talks aimed at securing the UK carmaker’s future.

The news was described as a “devastating development” by Tony Woodley, general secretary of the Transport and General Workers’ Union.

Mr Woodley said the unions’ “worst fears” had been realised, leaving 6,000 workers at the MG Rover factory in Birmingham and 18,000 in supplier firms facing a “bleak future”.

Mr Woodley said: ``The one in a million chance we felt our people had has now been taken away. We have worked hard this week with the administrators to develop a sound business plan to present to Shanghai Automotive Industry Corporation. But it does take two to talk and that opportunity has now gone.''

The TGWU leader said the full details of what will now happen to the MG Rover group have yet to emerge but the impact would be felt across the West Midlands and manufacturing generally.

He said the union would now be in urgent talks with the administrators to see what could be done for the thousands of people involved.

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