UK to Investigate MG Rover Collapse

Some four years after the collapse of MG Rover, the British government Serious Fraud Office has decided to look into what made the company go bust, according to Uk newspapers quoted by Autonews. The investigation will delay the publication of the report on the company's demise.

A spokesperson for the government told the newspapers that a statement on the issue will be made in parliament today, but did not elaborate on the provisions of the statement.

Of course, opposition officials blame the timing of the investigation which comes, as said, on the eve of the four-year long inquiry on the matter being completed. They say the government is trying to hide the fact they have spent millions of pounds from public money in 2005 to finance the country's biggest independent car manufacturer only as an election campaign tool.

"I welcome the introduction of the fraud squad into what appears to be a major corporate scandal but it must not be used as a smokescreen to hide what the public needs to know," Vince Cable, Treasury spokesman for the Liberal Democrat party was quoted as saying by Autonews.

Before going bankrupt, MG Rover was the country's last UK-owned manufacturer. It was formed after BMW sold the assets of the original Rover Group to Phoenix in 2000. In only eight months, Phoenix and Rover lost 400 million pounds.

The comapny went into administration in 2005 and its assets were bought by Nanjing Automobile Group, who restarted production of the MG sports car in 2007. The Rover marque was sold to Ford and later passed to Tata Motors, together with Jaguar Land Rover.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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