It is customary that the state provides subsidies to car- makers in an attempt to lure them in, said Jurg Dinner “We don’t want any special treatment. All we want is what our competitors are receiving in the way of inducements.” He said BMW was adamant that Rover’s future lay in Britain.This view was supported by Helmut Punke, BMW’s industrial relations director, who said there was a “prejudice” in favour of basing the new car there. He said “tremendous progress” made at the Birmingham plant meant it was a “very viable proposition”, adding that the Hungarian option was a “serious alternative”.”Of course there’s an emotional and practical prejudice towards keeping the manufacture of Rover products within the UK,” he said. “I think we can admit that the tremendous progress that has been made within the Rover manufacturing organisation makes us quite confident that together we will have a very viable proposition for production in the UK.”Asked how much money BMW wanted from the Government, he said he just wanted “the same rules” to apply to BMW as had been applied to other car firms, such as Jaguar.To receive European Commission approval for state aid, the recipient must demonstrate there was an “economically viable alternative location”.

It is understood BMW believes its case for UK aid is strengthened by considering Hungary as it would mean the multi-million pound investment going outside the European Union.However, Hungary could be a highly competitive option for BMW. Audi said it was attracted to Gyor by a skilled, flexible workforce at the cost of between one-fifth and one-sixth that of German workers, the absence of restrictive labour laws and the fact that it was German-speaking and close to the border.The BMW board is to make a decision in two weeks. It is aiming at the crucial small family car market by launching, later this year, revised versions of the slow-selling Rover 200 and 400 models. Codenamed Jewel and Oyster, these will have major changes, such as new axles and suspension.The investment is vital to the long-term survival of Longbridge. It could secure up to 40,000 jobs and support the factory’s case for building a new range of family saloons. Rover has already agreed 2,500 voluntary redundancies with unions as part of a package of measures to save pounds 150m a year.Yesterday, Mr Byers announced that the Government was to give Peugeot grant aid of pounds 2m to help to create 900 new jobs at its British base.Rover is to close its car component plant in South Wales, despite a campaign by politicians and unions to keep it open. Forty-four workers will lose their jobs when the factory in Bargoed, Mid Glamorgan, shuts next month.

A company spokesman said it was closing because of changes in “strategic requirements”.Nissan in merger talks,Business, page 16CAR WORKERS ACROSS THE EUROPEAN DIVIDE: HOW THEY MEASURE UPTHE LONGBRIDGE WORKERLocation: Birmingham, West Midlands, UKHistory: Founded in 1906 by Herbert Austin. Produced 329,709 vehi cles in 1997Average salary: pounds 16,000Average age: 44Working week: 37 hours over four daysWorkforce: 14,000 (to fall by 2,500)Overtime: none available (see below)Working under flexible working agree practices: ment, managers can `bank’ hours by paying e.g. four days pay for a two-day working week in quiet periods and then with draw the spare hours from the `bank’ in busy periods without paying overtime. In manage ment-speak this is known as `flexibleworking time account’.Holidays: five weeks a year plus statutory daysOther benefits: company pension scheme Pa ternity and maternity leave. On- site creche and training centreProductivity: 33 vehicles per employeeBuying power:Inflation 3.3%Loaf of bread pounds 0.88litre Coca-Cola pounds 1.1520 Malboro pounds 3.28Colour TV pounds 5003-bed flat pounds 450monthly rentHotel, per night pounds 137THE HUNGARIAN WORKERLocation: Suzuki plant in Esztergom, northern Hungary, just outside Budapest.History: began mass production in1992.

The factory’s target this year is 68,000 vehicles, Suzuki Swifts.Workforce: 1,300.Average salary: 816,000 forints ( pounds 2,232) a year.Working week: two eight hour shifts, from 7am to 3pm and from 3pm to11pm.Overtime: if they work on weekends or outside their shift times.Working statutory 20 days holidays a practices: year, as well as state holidays, such as Christmas, several national days, etc. For every two years worked workers re ceive an extra one day’s holiday, rising to a maximum of 30 days a year (excluding national and state holidays).Productivity: n/aOther benefits: n/aBuying power:Inflation 12.5%Loaf of bread pounds 0.50Litre Coca-Cola pounds 0.2220 Malboro pounds 0.67Colour TV pounds 2423-bed flat pounds 93.96monthly rentHotel, per night pounds 136Sources: Rover, Suzuki, Economist Intelligence Unit. AN ELECTION rival of Mohammed Sarwar warned the newly elected MP that his life and those of his children were in danger and offered his services as a bodyguard, a court was told yesterday. The rival, Badar Islam, a former professional cricketer and gambler, also allegedly disclosed a plot to plant drugs in one of Mr Sarwar’s cash- and-carry warehouses.
Mr Sarwar, taking the witness stand on the 30th day of his trial in Edinburgh, also describedhate mail received in the wake of stories linking him to voter fraud. He was particularly upset by a photo-montage with pictures of himself and his wife with guns pointing at their heads.

Adorned by swastikas, it threatened “hands off whites or die”. Mr Sarwar told the High Court jury: “I was upset and worried about the safety of my children and my wife.” One of his sons had opened the letter.Mr Sarwar reported it to the police but thought it “strange” when officers began by fingerprinting himself and his family. Strathclyde fraud squad was already investigating a rash of late applications to vote in Govan.On Monday the MP was acquitted of fraud, relating to the false addition of four names to the electoral register, and yesterday he was cleared of understating his election expenses.Mr Sarwar denies two remaining charges of attempting to pervert the course of justice. These allege he paid a pounds 5,000 bribe to Mr Islam to blame two other fringe candidates for the voter irregularities and conspired to pretend it was a loan.Mr Sarwar also revealed that in 1996 he was attacked and had his ankle broken.