We won't honour warranties, say Rover

Last updated at 09:18 13 April 2005


MG Rover will not honour its warranty obligations for new car owners because of "insufficient funds", it was announced today.

This means that around 150,000 Rover owners who have bought cars in the last two years will have to pay for any problems with their vehicles or look for another warranty provider.

Rob Hunt, of the MG Rover administrator team, said today that all dealers had been contacted to explain the situation.

Mr Hunt said: "A review of the company's warranty arrangements has been undertaken and has concluded that warranties continue in the first instance to be a matter between individual dealers and their customers.

'Insufficient funds'

"We're aware that historically MG Rover have reimbursed repairers and authorised dealers the cost of valid warranty claims. However, following our appointment as joint administrators on April 8, the company no longer has sufficient funds to reimburse warranties.

"Should customers wish to purchase warranty cover in the marketplace, a number of alternative providers are available. Most dealers will be able to advise customers on how they could obtain this cover."

Richard Cort, the chairman of the MG Rover dealer council which represents 264 dealerships, said he was disappointed at the news but added that on average every dealer was owed £100,000 in unpaid warranty payments and sales allowances.

MG Rover parts are supplied by American company Cat Logistics which has said that it has £40million worth of parts in stock so the supply of parts should be safe.

Most watched News videos