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. Last Updated: 07/27/2016

Britain Delivers Aid Package To Save BMW's Rover Plant

MUNICH, Germany -- German carmaker BMW AG says its management board is satisfied with a British government aid offer for its British Rover unit and plans talks with British unions to hammer out investment details.

British Prime Minister Tony Blair said last month that Britain had struck a deal with BMW over a state-aid package for Rover's Longbridge plant. The deal would be put to both BMW's management and supervisory boards, Blair said.

"The management board agreed in principle to the agreement made between the British government and BMW about the nature and scope of the support measures to be provided by the government with a view to securing the production of the follow-on model to replace the Rover 200 and 400 in Longbridge," BMW said Wednesday.

"Implementing the plans now depend on future discussions with the British unions and approval by the Commission of the EU," BMW added.

Final management board approval and supervisory board backing for the aid agreement is expected within weeks, a BMW spokesman said. He declined to say when the two boards would meet again to decide on the agreement.

Approval of an aid package for Longbridge will keep Longbridge alive and save thousands of jobs.

BMW had not yet made a decision on the level of its own new investment at Longbridge. A decision would be made after the company had talked to British unions and the European Union's European Commission had given a green light for the package, BMW said.

The Bavarian carmaker declined to comment on the level of investment put up by the British government.