Rover purchasers face redundancy

13 April 2005
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14 April 2005 | David Arminas

More than 100 purchasing jobs are likely to be lost following the collapse of British carmaker MG Rover.

However, many of the affected buyers have begun looking for new opportunities in the profession. One recruitment agent told SM it had received more than 10 CVs from Rover buyers since the company ended production last week. "For us, that is a flurry," she said.

An MG Rover source told SM the company employs around 100 purchasers in the UK as well as 30 logistics staff who work with procurement professionals and suppliers.

A further 10 to 20 purchasers had been working in China on the failed negotiations with Chinese automaker Shanghai Automotive Industrial Corporation (SAIC), he said.

A total of 6,100 jobs may be lost at the Longbridge production plant in Birmingham after the talks broke down.

The company ceased production at Longbridge last Thursday after some suppliers began to withhold deliveries to the plant while others demanded payment on arrival of their goods at Rover's factory gates.

The government has now moved to soften the blow of Rover's demise by announcing a £40 million programme to help suppliers with significant sales to the carmaker. The first of these payments was made to suppliers today

They aim to help firms through business planning and employee training, giving them "breathing space whilst they seek out new opportunities", according to the Department of Trade and Industry.

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