MG
Industry News
Nanjing Announces Investment. Issued August 29th 2006
Nanjing
Invests £118 million in Development
Reuters
reports today, Tuesday, that the Nanjing Automobile Group
has set up a £118 million (1.8 billion yuan) unit
to oversee the development of its own-brand cars based on
technology bought from British car maker MG Rover.
Nanjing
Auto will hold 22.22 percent of the new subsidiary, which
is set to roll out its first self-developed car by March
2007. The Shanghai Securities Journal has suggested
that six other firms, all Chinese, will share the remainder.
Nanjing
Auto, based in eastern China, took over MG Rover last year,
outbidding China's largest domestic manufacturer, Shanghai
Automotive (SAIC Motors) for the brand. The much smaller
organisation then ruffled more feathers in July this year
by announcing plans to build China's first car plant in
the United States. This facility, based in Oklahoma, will
be responsible for manufacture and assembly of a wide range
of models, including an all-new MGTF Coupé. The
firm also confirmed its intent to resume assembly of cars,
including the TF convertible, at Rover's Longbridge plant
near Birmingham, as well as introduce manufacture of saloon
cars at a new plant being constructed at its home base in
China. (For details, see our earlier news item here)
Meanwhile
SAIC, which enjoys a close relationship with General Motors
in America and Volkswagen AG in Europe, has committed 1.71
billion yuan towards the development of its own-brand cars
based on the acquired Rover 25 and 75 platforms, with an
eye on developed markets, including Europe. This follows
rumours, yet to be confirmed, that SAIC has acquired rights
to the Rover name from current owner BMW for a reported
£11 million. Ford is believed to have had first refusal
on the brand following the American company's earlier purchase
of the Land Rover marque, and is said to have been given
a period of some 90 days in which to exercise that right
before the deal with SAIC can go through.
Source:
Reuters items on 23rd
August 2006 and 29th
August 2006.