Iran looking to buy bankrupt carmaker

Iranian Minister of Industry Ishaq Jahangiri has confirmed Tehran is considering buying the bankrupt British carmaker MG Rover.

    MG Rover Group went bankrupt on 8 April

    "Talks have been held. We are at the stage of assessment now," Jahangiri told Iranian state television on Monday.

    The MG Rover Group collapsed on 8 April after its failure to form a joint venture with China's state-owned Shanghai Automotive Industry Corp.

    The collapse entails an embarrassing loss of jobs for Prime Minister Tony Blair, who is facing a general election on 5 May.

    "After MG Rover announced bankruptcy, naturally many carmakers offered to buy it. As an important carmaker, we announced that we wanted to study buying it," Jahangiri added.

    Iran Khodro, the Middle East's largest carmaker, has said it is not interested in buying MG Rover, but Saipa, Iran's second-biggest, is interested.

    Jahangiri's comments were the first official confirmation that Iran is considering making a bid for the British company.

    "Our auto industry is capable of reforming a troubled European carmaker and presenting it to world markets under the same brand," Jahangiri said.

    Opposition

    The minister said the outcome of the talks would depend on the conditions set by MG Rover.

    Iran's hardline media opposed the idea of buying the company when it was first reported in the press on Saturday. The daily Kayhan questioned the wisdom of trying to save a bankrupt company.

    In 1967, Iran bought the rights to manufacture its own version of the British Hillman Hunter. Renamed Paykan - or arrow - the four-cylinder car has been travelling the roads of Iran for nearly 40 years.

    But Tehran has announced that production of the Paykan will stop soon. 

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Meet the deported nurse aiding asylum seekers at US-Mexico border

    Meet the deported nurse helping refugees at the border

    Francisco 'Panchito' Olachea drives a beat-up ambulance around Nogales, taking care of those trying to get to the US.

    The rise of Pakistan's 'burger' generation

    The rise of Pakistan's 'burger' generation

    How a homegrown burger joint pioneered a food revolution and decades later gave a young, politicised class its identity.

    'We will cut your throats': The anatomy of Greece's lynch mobs

    The brutality of Greece's racist lynch mobs

    With anti-migrant violence hitting a fever pitch, victims ask why Greek authorities have carried out so few arrests.