Rover supply firms lay off workers

Firms which supply ailing car giant MG Rover have started laying off workers because of the crisis, industry sources said today.

Companies in South Wales and the Midlands have laid off hundreds of their employees following the collapse of talks aimed at securing the future of the UK carmaker.

Production at MG Rover’s Longbridge factory in Birmingham has been at a standstill since last Thursday when suppliers stopped sending components because of the money they were owed.

The Transport and General Workers’ Union said the news highlighted the urgency of resurrecting some kind of deal which will save the Longbridge factory from complete closure.

The 6,000 Longbridge workers have been told to report to the plant as normal tomorrow when they will hear from administrators whether they are to be laid off immediately.

Frantic efforts to retain production at MG Rover continued today as administrators from PricewaterhouseCoopers remained in Birmingham studying MG Rovers books.