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Counting the cost of MG Rover crisis
Page 6
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VIAth MG Rover on the brink of collapse the operators who supplied it
are left to count the cost — and it could be high. Jennifer Ball reports.
WORCESTERSHIRE FIRM TM Logistics could be the first of many operators including car transporters to be hit by the collapse of car manufacturer MG Rover.
The Martley-based haulier says it will be forced to make redundancies after MG Rover called in administrators PricewaterhouseCoopers (PwC) when talks with a possible Chinese investor broke down.
Celia Adams, MD of TM Logis tics, says MG Rover accounted for 5% of its annual £30m turnover: "TM Logistics has enjoyed a very successful partnership with MG Rover since it was awarded its first contract to manage a 2$20m= distri bution centre on-site at Longbridge in September 2000. Since then, it gained further contracts sequencing and delivering individual parts to the track for specific vehicles."
It is now making the 40 staff on the Rover contract redundant, although it is looking to relocate some drivers within the business.
Other firms involved with MG Rover are remaining tight-lipped about the impact of the collapse: Autocare (formerly Richard Lawson),ANSA Logistics and Bootlebased Mainland Car Deliveries all declined to comment.
As CM went to press PwC had secured £6.5m from the government to pay the workforce for a week. MG Rover's parent. Phoenix Venture Holdings,had pledged £49m to support the troubled firm.