BMW will avoid a commitment to build new car models at the Longbridge plant near Birmingham next month, reports the Financial Times.
This is when it is expected to announce it will go ahead with a US$2.7bn project to replace Rover’s 200 and 400 models. Insiders say Longbridge is the preferred site but BMW will tell the government that it could be located more profitably in Hungary or at other sites outside the European Union if the required financial aid is not forthcoming, says the newspaper. The Guardian writes BMW is poised to commit more than £1bn to the plant. It says the government is increasing pressure on BMW to reach a decision on Longbridge, The Daily Telegraph and The Guardian report that Stephen Byers, trade and industry secretary told MPs the government was ready to provide funds to protect jobs there. The Daily Telegraph adds that the government could be willing to offer up to £200m. But The Independent reports Byers’ address to the Commons differently. It says that he warned the government would not bail out Longbridge and that he refused to confirm speculation that he had prepared a £100m rescue package.
Financial Times 26/02/99 page 17
The Daily Telegraph 26/02/99 page 6
The Independent 26/02/99 page 8
The Guardian 26/02/99 page 27
