MG Rover on the Brink of Bankruptcy

Government Bailouts and Chinese Trade Deals May Not Be Enough to Save Centenary Firm

"This is a deeply worrying time." Such are the optimistic words of MG Rover, Britain's last volume automobile manufacturer,

Troubled MG Rover has encountered what might be its most challenging problem yet. (Photo: MG Rover)

about the situation it will be facing over the next short while.

The brand, which has been plagued with many problems since before BMW sold it to the British consortium, including decreasing sales and mounting debts, has encountered what might be its most troublesome problem yet - the breakdown of talks between it and the Shanghai Automotive Industry Corporation (SAIC), one of China's largest automobile manufacturers, and the company which would be MG Rover's saving grace.

Though today's MG Rover products are no longer sold in North America, they

Though today's MG Rover products are no longer sold in North America, they once thrived on this continent. (Photo: MG Rover)

once thrived on this continent. Previously part of the now-dissolved British Leyland, Rover, MG, Land Rover, Triumph, and Mini, just to name a few, were some of the most innovative automobile manufacturers on the face of the planet. But those times of glory were long ago, and much different than the story of today.

From the '80s onward, Rover struck a deal with Honda to share components, resulting in the Civic-based 400, the Accord-based 600, and the first generation Acura Legend-based 800, sold in North America for a brief stint as the Sterling. Though hard to believe, some of these cars, in slightly modified forms, are still in production today.