THE Rover brand could be sacrificed as part of a final bid to save MG Rover from insolvency, sources close to the ailing car group claimed last night.

But more than half the workers at the group's Longbridge factory, in Birmingham, would lose their jobs.

Administrators are believed to be working on a plan to dramatically slim down the company and retreat to a small portion of the Longbridge site.

A new MG company would manufacture sports cars and, possibly, the MG ZT - a sporty version of the company's acclaimed Rover 75.

Sources also said the group needed only £80m to put the desperately needed Rover 45 replacement into production.

If the money could be found, then the new MG car company would hope to sell a sports version of the hatchback.

However, the plan would depend on someone coming forward with cash to buy the rights to MG.

The news came as hopes of a rescue by China's Shanghai Automotive Industries Corporation (SAIC) receded and more than 6,000 British workers were sent home on full pay.

Administrator Pricewaterhouse, which was appointed to run the company on Friday, said it had no plans to resume car production.

And it revealed that, without a £6.5m emergency Government loan, it would have announced 5,300 redundancies yesterday.

In another twist last night, the European Commission said it must approve the loan, aimed at keeping MG Rover afloat for another week, before the £6.5m could be paid.

Wives and partners of MG Rover workers are planning to march on Downing Street tomorrow in protest at potential rates of redundancy pay, in a demonstration that will heap further embarrassment on the Government.

Pricewaterhouse revealed that MG Rover and its Powertrain engine business were incurring "very significant losses", estimated at between £20m and £25m every month.

Although the administrator said it wanted to reopen talks with SAIC, the Chinese company appeared to dash hopes it could be persuaded back to the negotiating table.

China's biggest car company has already stood down its negotiating team. Last night, it said it had no intentions of entering into a dialogue while MG Rover was in administration.

Industry observers believe SAIC is now content to wait for the company to fold. It can then bid for the best bits of MG Rover at a knockdown price.