Saturday, April 09, 2005

Wild Rover

Bob Piper has some interesting comments on the blog about Rover from the author of The UK Today, taking issue with John Hemming's attempt to shift the blame for the apparent collapse of Rover onto a few briefings from the DTI (anything to shift the focus from those who assembled the Phoenix consortium).

Although the PM and Chancellor were criticised for 'electioneering' by visiting Birmingham yesterday, they would have been damned as uncaring if they didn't. In fact, not offering a failing business a £100 million loan may be a very brave decision, as the loan may only have staved off the inevitable until after the election.

You do have to question a business that finds the money to pay top managers millions while digging a deeper pensions hole and not making any profit. Or perhaps that's John Hemming's idea of good corporate governance?

5 comments:

john said...

I have told the directors of PVH to their faces that I thought they extracted too much money from MGR.

balders said...

Horses and stable doors spring to mind. Perhaps we should hope that an investigation into the whole affair results in the directors contributing towards some form of redundancy payment? Oh, I know, it's a faint hope, but what the heck, it's Sunday.

If the Phoenix team were decent business with a viable plan and an ability to execute it, then we wouldn't be having these discussions.

Personally I think they knew the score, covered their arses, lined their nests and hoped that a merger/buyout by a third-party would actually save the company. Either that or they were seduced by their media portrayal as would be saviours.

Bob Piper said...

Right first time Balders... and still Hemming blames the DTI rather than the grabbing swine who paid themselves more as a failing company than the directors of BMW awarded for themselves. Bandwagon... Lib Dem... leap!

PoliticalHack said...

My other point would be, if you wanted Rover and had sight of the books, would you be better off waiting for the company to go into administration and buy the bits you want in a fire sale or do you pay the full market price. The Chinese may have a Communist heritage, but they know how capitalism works.

john said...

MG Rover was like a man teetering on a cliff being kicked off by the DTI.

The "teetering" was the responsiblity of the management. The "kicking" was the responsibility of the DTI.