BMW set to sell Rover name

By NICK GOODWAY FOR MAILONLINE
Updated: 08:38 EST, 14 April 2005

FORMER MG Rover owner BMW said today it will consider selling the Rover trademark, which it still owns. 'If someone shows interest in producing cars under the Rover name we will consider a sale,' said a spokesman in Munich.

BMW, headed by chief executive Helmut Panke, had been refusing to speculate on the marque or its worth. There was still no word on what the asking price might be.

The German carmaker sold Rover in 2000 after six years' ownership to Phoenix for a symbolic £10. But BMW said if the company is liquidated the Rover name could disappear.

The news came as the British Government was reported to have set aside £25m to keep MG Rover going as ministers and administrators try to revive a deal with Shanghai Automotive Industry Corporation (SAIC).

The money is enough to keep the car manufacturer running through to the General Election on 5 May. The funds would be used to cover wages at the Midlands carmaker as long as any hope remained of a deal with SAIC.

The Government put up an initial £6.5m loan this week to prevent a first wave of redundancies among the group's 6,100 workers. The loan, authorised by Trade Secretary Patricia Hewitt, also covers the fees charged by administrators Pricewaterhouse-Coopers (PwC).

The loan will run out at the end of the week and DTI officials have indicated that other funds will be forthcoming as long as there is any chance of a deal with the Chinese.

SAIC pulled out of rescue talks with MG Rover last week, triggering a shutdown of production on Thursday as suppliers cut off deliveries.

The group - the last British-owned volume carmaker - went into administration on Friday just as the election campaign began in earnest. Spokesmen for SAIC have said it was highly unlikely the company would want any part in discussions as long as MG Rover remains in administration.

UK ministers have, by contrast, offered a more- optimistic prospect. A £100m Government bridging loan is still believed to be on offer. PwC has said it is handling a number of expressions of interest, although it remains unclear whether these are for parts of the carmaker's operations.