ROVER lost £645 million last year - more than seven times the deficit recorded in 1997. The loss dragged BMW's profits down by 27% from £441 million in 1997 to £320 million which the company blamed in its restructuring of Rover, model changes, the delayed arrival of the Rover 75 and the strong Pound.

On the same day as BMW released its annual accounts it is understood to have received a rebuttal from the Government in its hopes of substantial financial support for the transformation of Rover's Longbridge plant with the Department of Trade and Industry offering about £100 million and not the hoped for £240 million.