Friday, December 01, 2006

Merry Christmas Rover Workers Everywhere!

Well, at least a few members of the Phoenix group will have a happier Christmas as they pocket their share of £22 million left in the bank.

Remember how John Hemming used to trumpet his support for Rover...
He is also known for having brought together the Phoenix Consortium that took over Rover from BMW. This action saved between 40,000 and 50,000 jobs mainly in the West Midlands for 5 years. Many people who work at Rover or Land Rover live in the Yardley Constituency. In 2005, however, the DTI pushed Rover over the edge when it was on the verge of sorting out its long term future. He has been looking at possible solutions from administration as well.
But then he airbrushed the picture to spin a subtly different tale
In 2000 John Hemming brought together the community, the workforce and certain businesspeople to put together a consortium to rescue Rover. John made the mistake of trusting John Towers who went on to kick John Hemming and the
community representatives from the consortium and ran the business in the way John Towers wished to run it. In 2003 John Hemming, being aware of the way in which the directors were extracting money and assets, looked at taking legal action to remove them from overall control. The conclusion was that this would damage the business and hit the local economy were it to proceed. In 2005 the business continued to lose money and as a result of the briefings of the Department of Trade and Industry suppliers refused to supply the company. It was then forced to bring in administrators on Friday 8th April at 2005.

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