ROVER has lost a decade-long supply contract with TNT UK following crunch talks with the beleaguered manufacturer - Vauxhall will take over the supply deal. No more Rovers will be taken on at TNT UK in a decision which the firm says was 'on the cards' before BMW announced its decision.

And the Phoenix buyout will make no difference. The move ends a 10-year tie-up with Rover, which has 450 cars on TNT's 1,500 car fleet. Rover began supplying on a solus arrangement before moving to a dual-badge supply deal shared with Volkswagen, which remains on the fleet. Vauxhalls will be supplied through Lease Plan, but an 'open dialogue' is continuing with Alphabet, which supplied the Rover fleet.

Simon Boggis, group fleet procurement manager of TNT UK, said: 'Discussions started with Rover months ago and more business issues were related than just the sale by BMW, but the decision has been reinforced by what has happened since. We have had a very strong relationship with them, but at this stage it is not right for our strategy. There is no concrete strategy for Rover's future and residual values have been affected.'