Rover’s Longbridge plant might not survive in the long-term despite the deal between trade unions chiefs and company executives, reports the Financial Times.
Brian Woods-Scawen, vice-chairman of City 2000, says the Midlands plant needs to be rebuilt either on part of the existing 161.88ha (400 acres) or on a greenfield site. Global overcapacity and heavy cost-cutting will increasingly place the plant in jeopardy, says the newspaper. Rover workers will vote on the proposed agreement this week.
Meanwhile the Longbridge plant was reported in The Mail on Sunday this weekend to have been offered a £1bn deal by Volkswagen.
Financial Times 07/12/98 page 11, page 23 (Editorial Comment)
The Daily Telegraph 07/12/98 page 24 (The City Checklist)
