Car firm puts brakes on production

Production at MG Rover is to halt early for Christmas while the car giant launches a stocktake, it was confirmed today.

Production at British car manufacturer MG Rover is to halt early for Christmas while the car giant launches a stocktake, it was confirmed today.

The company, which stopped building cars for three days last month to “realign” production with sales, said the stocktaking had been planned.

Workers will leave the production line at the factory in Birmingham to take part in the stocktaking exercise.

The factory will then close for two weeks for the Christmas and New Year shutdown, reopening on January 5.

Sales of MG Rover slumped by 30% last month compared with the previous November but the company stressed today that sales for the year were just 1.2% lower than in 2002.

A spokeswoman said workers would be redeployed next week and the situation was entirely different to the stopping of production last month.

MG Rover has been in the spotlight in recent weeks following trade union concern over the level of executive pay and pensions.

Unions also queried a trust fund which was set up by Phoenix Venture Holdings, which owns MG Rover, for its executives.

Financial advisers appointed by unions are to examine the company’s books in the New Year.