BEIJING, April 8 (Xinhuanet) -- Britain's last major carmaker -- cash-strapped MG Rover Group -- has decided to call

MG Rover, the last British-owned car maker, last night called in the receivers, throwing the future of thousands of jobs in the key political battleground of the West Midlands into doubt. (File photo)

in the receivers after a proposed takeover deal with a Chinese firm fell through, the British government said Thursday night.

    "MG Rover has announced that their board has decided to call in the receivers. This is a devastating blow to everybody involved -- the workers and their families, the company's suppliers and the wider community," Trade and Industry Secretary Patricia Hewitt said.

    Earlier Thursday, Rover suspended production at its British factory and called on the government to firm up its offer of a 100 million pound ($188 million) bridging loan to keep the company solvent and assist the proposed deal with China's Shanghai Automotive Industrial Co.(SAIC). 

    The move came after SAIC said it would not invest in the company.

(File photo)

    "In the end, SAIC made it clear that they were not confident about the future solvency of MG Rover, and therefore there was no reasonable prospect of a deal," she said.

    MG Rover, a former British icon dating back to 1905, was sold to Germany's BMW AG in the 1990s before returning to British hands when it was sold to Phoenix four years ago.

    The collapse of MG Rover is a severe blow to Britain's carmaking industry. Enditem

    (Agencies)