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Wednesday, 18 October, 2000, 09:34 GMT 10:34 UK
BMW in talks to sell UK plants
Worker at a Rover car plant
BMW will produce the new Mini at Cowley in Oxford
German car maker BMW has confirmed that it is in talks to sell its components and engine manufacturing units at Swindon and Longbridge.

The sales would mark the end of BMW's troubled association with MG Rover, the UK's last volume car maker which the German company sold in May for a nominal sum.

A company spokesman said the sales should be finalised "within the next few months".

The Longbridge engine and gearbox works, in the West Midlands, is likely to be sold to the MG Rover Group headed by John Towers, which bought the Rover brand from BMW.

The UK coachwork maker Mayflower is reported to be interested in buying the Swindon pressing plant, which provides parts for the new Mini - to be produced from 2001 by BMW at Cowley, Oxford.

Dispute

The two plants employ 3,600 people and are estimated to be worth about �300m.

No jobs are thought to be at risk as the factories will be sold as going concerns.

BMW denied a suggestion it would sell the Longbridge unit to MG Rover to settle a dispute with the Phoenix consortium - Rover's new owner - over the value of the UK firm.

The value of the engine works is reported to be about �220m, which is roughly equal to the amount of additional funding Phoenix is believed to be seeking from BMW.

BMW said a detailed valuation of Rover being carried out by accountants KPMG should be completed by the end of the year.

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See also:

15 Oct 00 | Business
Rover boss under 'pressure'
01 Oct 00 | Business
Rover in Longbridge talks
06 Oct 00 | Business
MG Rover cuts prices
09 Aug 00 | Business
BMW insider dealing probe
06 Jul 00 | Business
Rover slumps, BMW soars
28 Sep 00 | Business
The Mini finally grows
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