New hope for MG Rover

MG ROVER may yet survive, it was announced this afternoon. Joint administrators for the stricken car company said there is 'still an outside possibility' that some form of car production could restart at MG Rover's Longbridge plant.

The joint administrators said interest in the MG TF sports car part of the business had been narrowed down to 'three potentially viable proposals' and discussions for the sale of the rest of the business and assets were continuing with 'two credible interested parties'.

PricewaterhouseCoopers said it had asked potential bidders to provide proof of funds for their bids by last week and had examined these over the past few days.

Joint administrator Tony Lomas said the cost and complexity of the challenge of restarting car production at Longbridge should not be underestimated. 'Engine production would be a lesser, but still very demanding, challenge. The potential buyers are known to be looking at the alternative scenarios of continuing production at Longbridge or relocating it elsewhere,' he said.

The news will lift the spirits of thousands of Longbridge workers who face a grim future after the car maker's hoped-for deal with the Chinese collapsed last month.

That failure led to the calling in of administrators who made 5,000 of the 6,100-strong workforce redundant. The remainder were kept on to complete cars on the production line and to work at Powertrain, the company's engines business.

Earlier this month there were reports of a potential bid for the company from a consortium of three-Iranian car manufacturers. Saipa, Khodro, and Dastaan were said to have been told by the Iranian government to make an offer for the West Midlands-company.