Rover in the doghouse

Actually, it's worse than that: The MG Rover doghouse will be shutting down. Hope is fading fast on a salvific takeover by a Chinese automaker, and government assistance doesn't appear to be forthcoming for Britain's sole remaining car manufacturer. (This does not, however, necessarily mean that you will never be able to buy a "Rover" again; BMW retains the right to market autos under that brand name thanks to its one-time ownership of the company, which ended in 2000 in a deal the merits of which the Cranky Economist still doesn't completely understand.)

MG Rover's failure has several implications. First, it comes at a terrible time for Tony Blair's Labour government. Earlier this week Blair called an election for May 5, and this is a deeply felt industrial loss for the country. Will it tip the balance in the Tories' favor? Probably not. But it doesn't help confidence in Blair.

Second, look for the closure to re-spark Britain's perennial debate about "fat cat" executives. In an earlier article (to which I intended to link before Blogger crashed on me last night...), the Financial Times noted that MG Rover's current executives look set to walk away from this deal with their big pensions intact. Now, the Cranky Economist isn't generally bothered by large executive compensation packages. If asked, I will opine that the money is worth spending if it buys a company good management. Well, in this case perhaps it didn't. Food for thought for MG Rover's displaced workers and disgruntled shareholders.

Finally, a nostalgic note. From his youthhood, the Cranky Economist has heard Cranky Dad recount fondly stories of his time spent tooling around Belgium in Cranky Grandpa's MG back in the Cranky Day. It was arguably the manliest car Cranky Dad has ever driven; certainly it was far superior to the Datsun and -- gasp -- Dodge Colt that haunted my younger days like hatch-backed apparitions of real cars. And, unlike the "sporty" (?!) 300M currently in Cranky Dad's garage, that MG really was a sports car.

MG Rover, this speeding ticket's for you!