By David Benson
Job security and a new range of cars from the Rover Group were predicted by chairman Graham Day last night following the Â£150 million sale to British Aerospace. He said in Manchester: “I believe the great majority of our employees – perhaps 100 per cent – are happy with this news. The 1,000 dealers who supply us will also know that their relationship with us has been preserved. Uncertainty is not good in any business.”
Mr Day was allaying fears that the takeover, blessed by the Government with an extra Â£800 million in cash, would result in the demise of the volume car end of the business at Austin Rover. He said the giant factories at Cowley, Oxford, and Longbridge, Birmingham, would be safe under the new deal if productivity was maintained and new models introduced.
New models in the pipeline included a Rover Sterling fastback and coupe and a modified Montego. The Rover sale, which involves a Government write-off of the firm’s £3.5 billion State borrowings, has yet to be approved by British Aerospace shareholders.