£40 million aid package

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The UK government today set out details of a support package following the failure of MG Rover and the Shanghai Automotive to form a joint venture.

Secretary Patricia Hewitt today set out details of a support package following the failure of

and the

(SAIC) to reach agreement on a joint venture.

MG Rover Group today filed for a form of bankruptcy protection after the merger deal with SAIC fell through and a £100 million Government loan, contingent on a successful joint venture, was not granted. Up to 6000 jobs could be lost if MG Rover folds.

Ms Hewitt announced a first stage of immediate action to tackle the damaging impact that the failure of the deal will have on MG Rover's suppliers with a programme of support worth over £40 million.

According to the Department of Trade and Industry, this will help give MG Rover's suppliers the time and support they need to adjust and create new opportunities for the people who work for them. MG Rover was forced to stop production yesterday as suppliers suspended deliveries over fears they would not be paid.

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