Wednesday, April 13, 2005

MG Rover workers march to protest at Blair's home

Reuters

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LONDON - Families of workers at Britain's MG Rover set out to march on the residence of Prime Minister Tony Blair on Wednesday to protest over the possible closure of the bankrupt carmaker.

The demonstration threatened to embarrass the government and overshadow Blair's unveiling of his Labour Party manifesto ahead of the May 5 general election.

The march set off as administrators warned owners of MG Rover cars they could find their repair warranties invalid as the last major British-owned carmaker can no longer afford to fund the scheme.

The T&G union, which is backing the demonstration, said it would converge on Blair's 10 Downing Street home at around 1130 GMT.

"This is a spontaneous demonstration by wives and families of Rover workers to urge the government to do everything they can to save the plant," said a T&G spokesman.

Around 6,000 workers at MG Rover's plant in Longbridge, central England, and thousands more employed by firms to supply parts, could lose their jobs if the 100-year-old carmaker is wound up.

Hopes for a rescue deal are fading, although MG Rover's survival might be prolonged by the government extending a one-week lifeline loan.

A spokesman for administrator PwC said any warranty cover bought by MG Rover customers was now a matter between them and the individual dealerships.

"We are aware that historically MG Rover has reimbursed repairers and authorised dealers the cost of valid warranty claims," he said.

"However, following our appointment as joint administrators on April 8, the company no longer has sufficient funds to reimburse warranties."

MG Rover directors on Tuesday offered 49 million pounds ($93 million) in assets, including a mock medieval castle in central England, to head off the firm's demise, but sources familiar with the situation said such a deal was unlikely to be successful.