£7m package to help Rover 75 suppliers

THE GOVERNMENT has released £7m of grant aid for suppliers affected by the transfer of Rover 75 production from Cowley to Longbridge.

The cash is earmarked for companies facing down-time while the switch takes place, and can be used to fund training, external consultancy and re-tooling.

Trade and Industry secretary Stephen Byers hopes suppliers will use the money to turn the short-term negative impact of interrupted production into a long-term plus by improving operations.

The grants will be allocated by regional organisations such as the Birmingham & Solihull Training and Enterprise Council.

Suppliers will be eligible if more than 20% of their production is connected with the Rover 75, or if they have a 40% exposure to Rover business overall.

The cash is the latest chunk of the £129m promised to Rover and its supply chain by the Government following BMW’s sale of the company earlier this year.

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