Press Release

23/3/2000: Euro-MP seeks clarification from BMW on MG support package, Malcolm Harbour MEP

Former Rover Director and Conservative Euro-MP, Malcolm Harbour (West Midlands), has written to Professor Joachim Milberg, Chairman of BMW, seeking clarification on the support package that BMW is prepared to offer to the proposed launch of the new MG Car Company. Mr Harbour has drawn upon his experience as a former Corporate Planning and Marketing Director at Rover to spell out 17 areas where BMW support will be critical to the success of MG Cars, including:

• competitive redundancy packages
  
• restructuring assistance
  
• new product design support
  
• access to export dealer networks
  

Mr Harbour said: "BMW say that they are making provisions of nearly £2 billion of aid for the restructuring and relaunch of the MG Company, but it would be very helpful to all those involved in the Longbridge Task Force and everyone currently working at Rover, to have a clearer idea about the key elements of this package."

Mr Harbour has already stated his view, in a recent Birmingham Post article, that a restructured company offers the only realistic way forward for Longbridge. He argues: "I have spoken to other car companies and the Alchemy Ventures proposal, that has been under development since last October, is the only realistic option currently on the table. There are plenty of amateurs who think that the car business is easy and who are gaining publicity by proposing alternative solutions. We must wait until the six week negotiation period with Alchemy is over before considering other solutions".

In his letter, Mr Harbour emphasizes the great uncertainty facing Longbridge employees and everyone working at their suppliers and dealers. He emphasised: "It would be extremely helpful if you could clarify the support that you will be providing which would help lift some of the uncertainty being experienced by the families of those involved".

Notes to Editors
Malcolm Harbour's questions to Professor Milberg are available on request. Malcolm Harbour is the Motor Industry Spokesman for the West Midlands Conservative MEPs. He worked at Rover from 1967 to 1989, before running a Midlands based Car Industry research company.


For further information please contact Malcolm Harbour on +32-2 284 5132 or GSM +44 (0)374 198 851 or the Brussels Press Office on +32-2 284 1675 or GSM +32 (0)478 662 885