The boss of Rover take-over bidder Alchemy Partners today warned that a rival
offer for Rover is following a "doomed" strategy of wanting to retain mass
car production at Longbridge.
Alchemy Partners chief Jon Moulton dismissed the new offer, by a consortium
headed by ex-Rover boss John Towers, as unions urged BMW to support the rival
bid.
Trade and Industry Secretary Stephen Byers, meanwhile, was preparing to
discuss the crisis at a meeting in the West Midlands.
Mr Moulton dismissed the Towers' bid as not being a real competitor, saying
there was "no real sign" that it had any finance behind it. "It seems to be
something done with mirrors," he told the BBC Radio 4 Today programme.
"We think that there is a grave danger that a non-viable car company will be
re-created, there will be a short term increased employment followed by
approximately a nil employment.
"We think the way we are going gives an opportunity for a growing, viable MG
car company."
But being a small mass-producer of cars was "a doomed strategy", he said.
Rover's German owner BMW has confirmed it had received a letter "containing a
proposal for the takeover of Rover from a consortium that includes John
Towers".
BMW said it was now examining the letter and was "not in a position" to make
any further comment.
The move by Mr Towers, who was chief executive at Rover, means BMW must now
consider this new offer against the rival bid from Alchemy Partners.
While Alchemy's plans will involve heavy job losses and a slimming down of
production, Mr Towers, who is currently chief executive of components company
Concentric, is understood to have outlined a scheme to keep Rover.
Roger Lyons, general secretary of the Manufacturing, Science and Finance
union, said: "We are pleased that this bid has been tabled and we hope it
will be considered as a serious alternative."
The Towers bid, called the Phoenix Project, could save many of the jobs under
threat from the Alchemy proposal, particularly at Rover's Longbridge plant in
Birmingham.
Alchemy wants to cut back on Rover 25, 45 and 75 production while
concentrating more on the production of MG sports cars.
The Phoenix plan will need strong financial backing as Alchemy calculates
that Longbridge could make losses of £2.1 billion this year.
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