LONDON, April 15 (UPI) -- British car manufacturer MG Rover collapsed after the Shanghai Automotive Industry Corps. ruled out a deal Friday.
PricewaterhouseCoopers -- administrators for MG Rover -- said in a statement significant layoffs were on the way and notices would start being sent to workers this weekend.
They had received a letter from Shanghai Automotive earlier saying they were not interested in MG Rover as a going concern.
Trade and Industry Secretary Patricia Hewitt told the BBC the deal ended due to the "sheer scale of losses" the company was carrying.
Tony Woodley, head of the Transport and General Workers Union, said the deal's collapse was a "devastating development" and the union's worst fears had been realized.
MG Rover employs around 6,000 workers at its Longbridge plant in Birmingham.
The government had earlier provided a $12.2 million bridging loan to pay wages for a week. It has ruled out any further handouts.
