CGNU snubs Rover workers

Growing confidence among MG Rover workers was undermined yesterday after the country's largest insurance company cast doubts on the group's future.

CGNU, the result of last year's £19bn merger between CGU and Norwich Union, is refusing mortgage insurance for workers at the group's Longbridge plant.

A spokesman said: "The future of MG Rover has not been absolutely determined. From our point of view there is very much an issue around job security. It is the situation at the moment where our underwriter's view is that there is sufficient uncertainty to keep this [ban] in force."

John Towers, the former Rover chief executive who now chairs MG Rover, said: "It's ironic. Ford is closing its plant at Dagenham, Vauxhall wants to close Luton and there is even a question mark over Nissan at Sunderland, yet Longbridge is prospering.

"It indicates that Norwich Union haven't really done their homework."

This month MG Rover said it had exceeded last year's sales target of 200,000 vehicles and chief executive, Kevin Howe, said it was on course for a return to profit next year. The workforce has been issued with free shares in the company.

Tracey O'Meara raised the mortgage insurance issue after being refused a quote by CGNU's Norwich Union Direct because her husband worked for MG Rover.