Dealers to get no warranty money
Rover has run out of money to pay dealers for warranty claims, and dealers are being urged to make alternative arrangements.
Though hardly unexpected in the circumstances, a spokesman for company administrator PricewaterhouseCoopers said yesterday, “We acknowledge the difficulties and uncertainty dealers now face due to the administration. We wrote to all dealers yesterday morning (12 April) to explain the impact of the administration on the dealer network.
“A review of the company’s warranty arrangements has been undertaken and has concluded that warranties continue in the first instance to be a matter between individual dealers and their customers.
“We’re aware that historically MG Rover has reimbursed repairers and authorised dealers the cost of valid warranty claims. However, following our appointment as joint administrators on 8 April 2005 the company no longer has sufficient funds to reimburse warranties.
“Should customers wish to purchase warranty cover in the marketplace a number of alternative providers are available. Most dealers will be able to advise customers on how they could obtain this cover.”
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