MG Rover Goes into Administration
;)
After a night of confusion, MG Rover has confirmed that it is going into administration.
When the government announced this had happened late on Thursday, MG Rover denied it. It said only that is was calling on Price Waterhouse Coopers to advise on its position. However, with suppliers refusing to deliver and the decision by some retailers early on Friday to remove Rover models from their websites, the company has bowed to the inevitable.
The position of owners who have cars under warranty is not clear. The first year's warranty is backed by MG Rover and is therefore difficult to enforce, but subsequent years may be insurance-backed so should still be valid. Owners should contact their dealers (assuming they can get through today), but may struggle to get any warranty work done until the situation becomes clearer. Anyone considering buying a new MG Rover - and there will be cheap ones about - should factor in the cost of a separate insurance-backed warranty. Any retailer will be able to sell one of these.
