Britain to loan troubled automaker money

United Press International
Sunday, April 3, 2005 12:00 a.m. | Sunday, April 3, 2005 12:00 a.m.

The British government has offered automaker MG Rover a bridging loan to help secure a deal with its Chinese partner, Sky News reported Sunday.

If the deal is secured, Shanghai Automotive Industrial Corporation will invest up to $1.9 billion in MG Rover, safeguarding 6,000 jobs at the Longbridge plant in Birmingham.

Reports have suggested the government could loan as much as $188 million to help the car manufacturer stay in business until the Chinese deal is completed.

A Department of Trade and Industry spokeswoman said: "Throughout this process the government has done all it can to help support the joint venture between MG Rover and SAIC.

"A team of DTI officials is in China this weekend holding discussions with SAIC. We are also in touch with the Chinese government.

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