I'm afraid Rover couldn't compete. They had dressed some pretty old cars up in new clothes and had run out of time to come up with new models. The sales figures tell the story.
I think the management have a lot to answer for. On the other hand, but for them, this is a thread you would have been reading 5 years ago.
I don't think it is for the government to sort out. They are a private company and I'll bet there are many others who would like a government loan. Ultimately it comes down to whether they are selling enough cars that people want more than other brands.
It's strange that many people who accuse the Labour government of being a nanny state think that they should rescue a failing company (not including present company, by the way).
I feel sorry for all the workers at Rover as I think they have been ill-served by their bosses. But I don't think it is an issue for government.