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Tonight MG Rover has announced that their board has decided to call in the receivers.
This is a devastating blow to all those involved - the workers and their families, the company's suppliers and the wider community. Tonight our thoughts are with them.
Everyone recognised that a partnership with SAIC was critical to MGR's future. That is why MGR, the government and the trade unions have been working tirelessly round the clock to secure this deal.
In the end, SAIC made it clear that they were not confident about the future solvency of MG Rover, and therefore there was no reasonable prospect of a deal.
The government stood ready to issue bridging finance of over £100m to help, but without a deal there was no possibility of a bridging loan. SAIC, for their part, indicated that bridging loan finance would not have solved their concerns.
All parties have agreed that we must now give our full support to the workers and their families and the suppliers and communities affected. The government and unions will now work with the administrator and all concerned to try to secure future car manufacturing at Longbridge.
The government will be providing a substantial support package, and will establish a Rover Taskforce led by Nick Paul, the chairman of Advantage West Midlands.
Further details of the support package and taskforce will be announced tomorrow (8th April 2005).