It's hammer time for MG Rover

ROVER brand, Motor Group Australia, will next month auction its remaining new and near-new cars in a national public auction.

A total of 185 cars will be offered, ranging from the small MG TF roadster to the high-performance, Rover 75-based ZT model.

Buyers can expect savings of up to 15 per cent off retail prices for the cars, but respected auction house Bonhams and Goodman believes bidding will be hot for the remaining TF models.

Bonhams spokesperson Susan Pugsley said she had fielded "hundreds" of calls about the two-seater sports cars.

"I expect there will be hot bidding for the MG models so the savings might be minimal," she said. "A lot of people will want the badge."There are about 30 TF 120s and 160s up for grabs, seven ZT V8s, another 30ZT V6s, 30 diesel-powered Rover 75s and about 25 Rover 75 Clubs, as wellas MG ZS and ZR models.

Bonhams, which recently handled the Lindsay Fox classic car auction, will conduct the national event on June 13 for Motor Group Australia.

MGA managing director Michele de Vriendt said he expected warranty issues to be resolved before the auction.

"We are working with two insurance companies," he said. "We have three proposalson the table.

"Because we (MG Rover) are in administration, the issue of warranties is more complex."Originally, Mr de Vriendt believed warranty and re-insurance issues would be sorted out last month but now hoped to have a clear warranty plan in place "within two to three weeks".

The Bonhams auction will be conducted in five cities simultaneously. The cars are mostly located in Sydney and Melbourne but there are also some in Brisbane, Adelaide and Perth. The auction will be based at the Fox Studios in Sydney.

Bidders will be invited to view cars and attend the premises on auction night at various locations nationally, including Bruce Auctions in Adelaide and Leonard Joel in Melbourne.

Bidding will occur in real-time" from the various locations by phone or the internet. Mr de Vriendt said bidders were are also expected from New Zealand, where the MG and Rover brands have a bigger presence.

Bonhams Goodman chief executive Tim Goodman said he believed it was the first time a simultaneous car auction had been conducted nationally.

"We understand that warranties, national parts and service will be available to all buyers at auction," he said.

Mr de Vriendt said buyers would have full backing on the cars.

"I expect there will be a lot of interest," he said. "Particularly now we know that warranties will be fine and parts will be supplied through Caterpillar."MG Rover in Australia has had to fend for itself after the collapse of the UK car-maker last month. It has been struggling to resolve the warranty issue after the UK administrator, PricewaterhouseCoopers refused to honour any new car or existing warranties worldwide.

Under Australian law, it is impossible to sell a new car without a full warranty.

* Chapman Automotive Limited is poised to bid for assets related to MG from PricewaterhouseCoopers, the administrators of MG Rover Group in the UK.

It wants to bid only for the TF roadster and associated manufacturing equipment, and said in a statement issued last week that it was supported by a consortium of investors "including an overseas vehicle manufacturer, a US-basedinvestment fund and a wealthy entrepreneur".

The Chapman plan envisages TF production transferring from Longbridge to another facility in the West Midlands. It said production could commence later this year and that sales would be made through a revived dealer network in the UK, Europe and other right-hand drive markets.

A return to the US market is predicted within the medium term.

Chapman Automotive was founded by former design director of Lotus Cars, Colin Spooner, and two other businessmen.