This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8250051.stm
The article has changed 20 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Rover bosses' pay 'unreasonable' | |
| (10 minutes later) | |
| The executives who were running carmaker MG Rover when it collapsed received "unreasonably large" payments, an independent report has said. | The executives who were running carmaker MG Rover when it collapsed received "unreasonably large" payments, an independent report has said. |
| The five executives took about £42m in pay and pensions from the troubled Birmingham-based firm. | |
| The men will be banned from running other companies, the government says. | The men will be banned from running other companies, the government says. |
| The so-called Phoenix Four, plus chief executive Kevin Howe, described the report as a "witchhunt" and a "whitewash for the government". | The so-called Phoenix Four, plus chief executive Kevin Howe, described the report as a "witchhunt" and a "whitewash for the government". |
| MG ROVER'S DEMISE 2000: Sold by BMW to the Phoenix Four for £102000-2004: Made losses of £611m in the first four years2004: Started talks with Shanghai Automotive Industry Corporation (SAIC)2005: SAIC pulled out of a deal to save the whole company and MG Rover goes into administration2006: MG Rover's assets sold to Nanjing Automobile2007: Nanjing resumes MG production at the Longbridge plant2009: Serious Fraud Office investigates circumstances of collapse but says no plans for criminal charges2009: Long-awaited report, which has cost more than £16m, is released Timeline: MG collapse In pictures: Rover's history Robert Peston on Rover | |
| "Our remuneration was not the reason for the collapse. The real reason is the government bungled the last chance to save MG Rover," they added. | "Our remuneration was not the reason for the collapse. The real reason is the government bungled the last chance to save MG Rover," they added. |
| The demise of MG Rover, in 2005, brought an end to mass production of cars by a UK company. | |
| 'Misleading information' | |
| The Serious Fraud Office (SFO) has said it does not intend to launch a criminal investigation into the collapse, which saw about 6,500 people lose their jobs. | The Serious Fraud Office (SFO) has said it does not intend to launch a criminal investigation into the collapse, which saw about 6,500 people lose their jobs. |
| The 850-page report took four years to produce and cost about £16m. | The 850-page report took four years to produce and cost about £16m. |
| "During the five-year period, the members of the Phoenix Consortium and Mr Howe obtained large, and we say unreasonably large, financial rewards, totalling tens of millions of pounds," it said. | |
| MPs investigating the demise of the firm were given "inaccurate and misleading information" by one of the four directors, the report added. | MPs investigating the demise of the firm were given "inaccurate and misleading information" by one of the four directors, the report added. |
| It also found evidence of questionable briefings to the press by government officials. | It also found evidence of questionable briefings to the press by government officials. |
| Talks breakdown | |
| The Phoenix Four were chairman John Towers, ex-vice-chairman Nick Stephenson, Peter Beale and John Edwards. | |
| They took control of MG Rover in May 2000 after buying it from previous owner BMW for a nominal £10 - beating off an approach from venture capitalists Alchemy Partners. They also gained an interest-free loan of £427m from the German carmaker. | They took control of MG Rover in May 2000 after buying it from previous owner BMW for a nominal £10 - beating off an approach from venture capitalists Alchemy Partners. They also gained an interest-free loan of £427m from the German carmaker. |
| FINANCIAL REWARD Mr Beale £8.981mMr Edwards £9.024mMr Stephenson £8.976m Mr Towers £8.958mMr Howe £5.708m Source: MG Rover report | FINANCIAL REWARD Mr Beale £8.981mMr Edwards £9.024mMr Stephenson £8.976m Mr Towers £8.958mMr Howe £5.708m Source: MG Rover report |
| They were eventually unable to turn around MG Rover's fortunes and it went into administration under insolvency procedures in April 2005, with debts of more than £1bn. | They were eventually unable to turn around MG Rover's fortunes and it went into administration under insolvency procedures in April 2005, with debts of more than £1bn. |
| Its assets were subsequently sold in 2006 to China's Nanjing Automobile, which revived the MG sports car brand, but moved most of the production to China. | Its assets were subsequently sold in 2006 to China's Nanjing Automobile, which revived the MG sports car brand, but moved most of the production to China. |
| Before its demise, MG Rover had held talks about a joint venture with the Shanghai Automotive Industrial Corporation. (SAIC) | |
| The report said that the government could not be blamed for the collapse of those talks - and that SAIC had lost interest in Rover, despite the UK "seriously" considering offering bridging finance. | |
| Have you been affected by the issues in this story? Are you a current or former MG Rover employee? Send us your views. | |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |