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Haulage firms hit as Rover collapses
Page 6
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The collapse of Rover has lead to more fall-out for the transport industry. Guy Sheppard reports.
NEWLY CREATED car transport specialist Autocare Group is owed more than £500,000 by failed car manufacturer MG Rover.
Closure of the UK's last volume car producer also means the former Richard Lawson Auto Logistics business has lost around £4m in turnover three months after being bought out of administration.
But David Horton, chairman of Autocare, remains optimistic about the company's future and says plans to buy 15 new trucks are still going ahead.
"These things are always a body blow, but are not life threatening. We're quite fortunate in that we have a lot of other manufacturers desperate to take up the slack and use that capacity. The short-term situation is that we are still running everything."
He adds that there is no likelihood of any redundancies among the company's 650-strong workforce as a result of the closure.
Autocare handled around half of MG Rover's car deliveries, sharing the work with Carlislebased ECM (Vehicle Delivery Service) which has declined to comment about the closure.
Horton says the three-year contract with MG Rover accounted for around 8% of its £50m-a-year turnover from car transporting.
The company that runs MG Rover's component distribution centre at Longbridge, Birmingham. is due to make a statement about the future of its business this week.
The joint venture between Lichfield-based Hellman Worldwide Logistics and Rudolph Logistics of Germany has held the contract for nearly five years.