Deloitte faces complaint over advice prior to MG Rover bankruptcy

Article by Christian A., on February 2, 2012

Deloitte LLP is facing a complaint from the UK accounting regulator for being unable to "consider the public interest" while advising on transactions which involved the now defunct UK vehicle company MG Rover Group. The Accountancy & Actuarial Discipline Board disclosed in a statement that Deloitte's conduct as well as a former partner "fell short of the standards reasonably to be expected."

It further said that the company did not consider "the conflicts of interest and self-interest" when it advised both the car company as well as its parent company Phoenix Venture Holdings. The issue has been referred to an independent tribunal.

Deloitte commented that they disagree with the AADB, adding that they are "confident" that once all the evidence is considered, the tribunal will decide that there is no justification for criticism of Deloitte or its former partner. In 2005, MG Rover went bankrupt with 1.3 billion pounds (equivalent to $2.1 billion or 1.6 billion euros) of debt. Also, about 6,000 people lost their jobs that time. China-owned Nanjing Automobile Group (NAC) bought the MG Rover assets in July of the same year for around $97 million.

Another China-owned automaker, SAIC, failed in its efforts to bid for the asset after buying the intellectual property rights to sell the Rover 75 and 25 models in China. In 2007, SAIC combined with NAC and since then, it restarted small-scale production of MG models at the Birmingham factory of MG Rover.

Morris Garages Motor UK Limited (MG Motor) just received a major design award with its outstanding MG Icon concept car. The prestigious 'Best Concept' title, one of the most sought-after awards on the international automotive show calendar, was awarded to MG Motor at the 2012 Beijing Motor Show.

The MG Icon beat the Lamborghini Urus, Mercedes-Benz Concept Style Coupe and Honda Concept C—all equally stunning concept cars from distinguished automotive brands.

Autoweek, one of the USA's leading automotive magazines, announced the awards and will present MG Motor with an engraved trophy at a later date. Greg Kable, a highly acclaimed international motoring journalist and Autoweek's German editor, was enthusiastic in his remarks about the Icon.

Kable said that the Icon continues MG's comeback under parent company SAIC Motor. Cohesively bringing a recently interpreted heritage styling to the compact-SUV, the Icon finds itself competing directly against the likes of the Nissan Juke and the Mini Countryman, Kable added.

The MG Icon is the first SUV concept from MG Motor and was created by the MG global design team overseen by British director Anthony Williams-Kenny, who has recently been promoted to his new position as Global Director in SAIC Design.

Williams-Kenny exclaimed how it’s a “great honour” to receive the award, especially when the judges decided to place the MG Icon ahead of plenty other famous brands. He also said that judges clearly shared the brand’s enthusiasm and vision for MG.

The concept takes inspiration from some of the legendary MG models of the past, including the MGA and MGB GT, however, no plans have been announced concerning production of the MG Icon.

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Topics: mg, bankruptcy



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