AFP/Carl De Souza
The Daily Telegraph reports that senior British ministers held a series of meetings with the Iranian government before the collapse of MG Rover, hoping to clear the way for a deal that could have doubled Rover's worldwide production and perhaps saved the company.
The paper says the talks involved an Iranian firm, Dastaan, which had been negotiating with MG Rover since early 2004 over plans to assemble some 150,000 cars each year in eastern Iran - more than the entire output of the MG Rover group in 2004.
The first trial shipment of 2,000 Rover 75 and 45s worth £20m was due this April, May and June, with another £30m delivery later in the summer. The shipments were meant to test the market and establish a trading relationship before Rover and Dastaan moved on to the assembly stage in 2006.
The Telegraph says Dastaan began to have cold feet as reports reached Iran about growing difficulties at Longbridge.
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