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UK Government involvement in MG Rover
09 August 2005
Request:
1. Who made the decision to put Rover into administration in April 2005?; and was that decision taken?
2. How many times did Treasury officials go to China for meetings with officials from Shanghai Automotive Industry Corporation in relation to the futures of Rover?; and on what dates?
3. When did HM Government decide to withdraw a £100 million bridging loan to aid the possible takeover of Rover in 2005? Which Government department made decision? Please provide comparative analysis drawn up which led to that loan being withdrawn;
4. When did HM Government realise that Rover could no longer meet its liabilities?
Disclosures:
These are questions to which Treasury’s answers are requested, rather than requests for recorded information within the terms of the Freedom of Information Act. We are however happy to provide the following responses outside of the terms of the Act:
Question 1: The decision to put Rover into administration was made by the MG Rover Board on 7 April 2005. An administrator was appointed on 8 April.
Question 2: Treasury officials did not meet with officials from Shanghai Automotive Industry Corporation.
Question 3: The Government did not withdraw the proposed bridging loan. Rather the company went into administration. For this reason, no comparative analysis of the sort you describe is held.
Question 4: It became clear that Rover would not be able to meet its liabilities once there were no longer prospects of the deal with SAIC. SAIC gave that confirmation on 7 April 2005.
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