/ 10 April 2005

MG Rover SA reassures clients

MG Rover South Africa has reassured its clients that they will not be affected by the international group’s financial problems, South African Broadcasting Corporation radio news reported on Saturday.

This follows the announcement that the car manufacturer is going into financial administration after a proposed takeover deal with a Chinese firm fell through.

”The situation is that with our warranties it is locally funded in South Africa and all customer warranty programmes will be honoured on the vehicles,” said Albert Venter, of MG Rover SA.

”Secondly, MG Rover sold part of its operation a number of months ago to Caterpillar Logistics, one of the largest logistics companies in the world.

”They have assured us that there will be normal part supply in South Africa.”

Discussions are being held at the moment with all role players to try to find a solution. Tony Blair, the British Prime Minister, is reportedly also involved in the discussions.

PriceWaterhouseCoopers has been appointed as administrators and will make an announcement on Monday on the future of the company.

MG Rover is the last major independent car manufacturer in Britain and its collapse can affect 6 000 staff and thousands more supply jobs. — Sapa