Disgruntled staff blame the 'Phoenix Four'

Workers at MG Rover's plant in Birmingham said that morale was "at rock bottom" after the announcement that production had been suspended. Hours later, moods must have plunged even lower when it was announced that the firm was heading for administration.

Workers at MG Rover's plant in Birmingham said that morale was "at rock bottom" after the announcement that production had been suspended. Hours later, moods must have plunged even lower when it was announced that the firm was heading for administration.

As production-line staff left the plant at Longbridge yesterday they realised that there was an uncertain future ahead of them, but they were unaware quite how soon the threat would manifest itself. Many were still keen to point the finger of blame at the management team.

The management ­ John Towers, Nick Stephenson, Peter Beale and John Edwards ­ who, in more optimistic times, were called the Phoenix Four­ will clearly not be hit in quite the same way as their workforce.

While they have overseen sales dropping to about 100,000 last year and losses totalling at least £611m since they paid BMW a symbolic £10 for the firm in 2000, it is believed the four bosses have paid themselves about £31m in salaries, pensions and benefits.

In addition, their investment vehicle, Phoenix Venture Holdings, would have kept a 25 per cent stake in any Chinese joint venture, likely to be worth at least £50m, according to industry experts.

For the man on the shop floor, that came as no surprise. Dave Wilkins, 44, who has 20 years' service with the firm working as a rectifier, blamed senior management for not investing in the plant. He said: "They've not invested anything. The equipment is here, they should have invested the money in prototypes."

Mr Wilkins added that production had been faltering at the site for a while and that yesterday was especially bad, with people milling around all day as the production line stood idle. Mr Wilkins, who now plans to become a firefighter, said: "There's been a shortage of parts for the past two months. They haven't been paying their bills."

Another worker outside the gates, a 50-year-old father of two, who did not want to be named, said: "People worry about whether they are going to lose their house and how their families are going to suffer."

Ever since the takeover, sales have sagged dramatically from more than 200,000 in 1999 to the current low and the losses have grown ever higher. Figures for last year will not be made public until the autumn. Meanwhile, Rover sources have reportedly said that the Phoenix Four would continue to control valuable businesses and assets including two MG car models, Rover's car showroom and financing businesses as well as Studley Castle, a £5m stately home in Warwickshire.

Speaking outside the site, Ian Lambeth, 46, a worker from Bartley Green, said that many staff wanted answers from management about their fate and about the worth of 800 shares issued to workers after BMW sold the plant. He said: "Everyone is very despondent. They want an outcome one way or another."

LONGBRIDGE'S BUMPY ROAD

1905: Plant at Longbridge, Birmingham, opened by Herbert Austin.

1922: Austin Seven launched.

1946: Longbridge produces its millionth car.

1952: Austin merges with Morris to form the British Motor Corporation, which later merges with Jaguar.

1968: BMC merges with Leyland, which owns Rover, to create British Leyland.

1975: Wilson government bails company out with £2.4bn. The National Enterprise Board is now in charge of the business.

1988: Privatising sale of Rover to British Aerospace for £150m.

1994: BAe sells Rover for £800m to BMW.

2000: Consortium buys Rover for £10.

November 2004: Talks with China's SAIC.

April 2005: Longbridge suspends production. Rover goes into administration.