MG Rover South Africa has re-assured its clients that they will not be affected by the international group's financial problems, SABC radio news reported on Saturday.

This follows the announcement that the car manufacturer is going into financial administration after a proposed takeover deal with a Chinese firm fell through.

"The situation is that with our warranties it is locally funded in South Africa and all customer warranty programmes will be honoured on the vehicles," Albert Venter of MG Rover SA said.

"Secondly, MG Rover sold part of its operation a number of months ago to Caterpillar Logistics, one of the largest logistics companies in the world. "They have assured us that there will be normal part supply in South Africa."

Discussions are being held at the moment with all role-players to try and find a solution. Tony Blair, the British prime minister, is reportedly also involved in the discussions.

Price WaterhouseCoopers has been appointed as administrators and will make an announcement on Monday on the future of the company.

MG Rover is the last major independent car manufacturer in Britain and its collapse can affect 6000 staff and thousands more supply jobs.

Sapa

SA COMPANIES & BUSINESS INFO Trying to find your way around South Africa's corporate landscape? Looking for a info on a particular company or sector? After the latest business, financial or market news? Here's a quick directory of links to get you started.

MORE BUSINESS NEWS Staff get 10% stake in Netcare Only 26% of firms worried about Aids Reunert revises earnings upwards DRDGold output slides 16 percent New Clicks interim earnings slide Construction charter seen by August Large trade deficit needed for growth Harmony sells 14% stake in ARM Empowerment deal lifts EOH revenue Credit body supports bill