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20th July 2007, 14:50 | #1 |
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Could there be a merger?
Found this earlier today, interesting reading. Its dated June 29th http://www.expressandstar.co.uk/2007...fuels-mg-hope/
£500m deal talks fuels MG hope The two Chinese car companies that each own a chunk of the collapsed MG Rover are in talks that could lead to a £500 million takeover deal. Nanjing Automobile Company (NAC), the firm which is restarting production of MG’s at Longbridge this summer, is in talks with bigger rival Shanghai Automotive, which has launched its own version of Rover’s 75 saloon, called the Roewe 750. Reports from China suggest that the Beijing government is trying to broker a merger between the two. The leadership, which has a major stake in both businesses, hopes they can jointly relaunch MG and sell cars into Europe and the rest of the world. It wants them to combine their development, production and marketing efforts as both are marketing cars based on the old Rover 75 saloon. Eleanor De La Haye, spokeswoman for Nanjing’s UK MG business, said: “The talks are more about the possibility of a working partnership. It is no secret that the Chinese government has ordered them to talk and that is what they are doing. “The discussions at the moment focus on the mutual benefits that can be gained by them working together. “Shanghai Auto is a big company - it is like the Ford of China - but NAC is the first Chinese car company to a globally recognised brand in MG. This could mean expansion for the development facility at Longbridge,” she added. Both Chinese car companies ended up with parts of the MG Rover business after the business collapsed. Nanjing Automobile bought the Longbridge business in 2005 for £53 million, getting the production equipment and the MG name. But the Rover name, still owned by BMW which ran Longbridge in the 1990s, was later sold to Ford. Shanghai Automotive, China’s biggest car company, had been in talks with MG Rover for a possible bail-out but backed away at the last minute, pushing the fatally weakened car company over the edge. The failure of MG Rover left debts of £1.6 billion and cost 6,500 workers their jobs. But Shanghai was left with blueprints for the Rover 75 and 25 cars. Earlier this year Hu Maoyuan, president of the firm said at the Shanghai Auto Show that his company wanted to co-operate with Nanjing Auto. |
20th July 2007, 17:10 | #2 |
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Hope not or Bang goes the quality MG7 finish.
Comments from anyone..... |
20th July 2007, 17:15 | #3 |
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Could go the other way John? The Chinese government may force them to make both to the quality of the MG7 if they want to come into Europe and the rest of the world as it say's in the report.
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20th July 2007, 17:19 | #4 |
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That of course would be a good result but seeing both the Crash test and first reports of the Roewe 750 their quality at present appears to be awful against the MG7 which is stated as Excellent even down to getting rid of Bonnet Gap.
I hold my breath but as you say to break into foreign markets they will have to improve....... |
20th July 2007, 20:17 | #5 | |
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I hope they don't merge..there might be some mileage in a JV and component sharing (whilst the models share components..they may not in the future)..but otherwise I think MG has the lead at the moment. Richard |
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15th December 2007, 16:04 | #6 | |
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Latest news from the Birmingham Post:
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16th December 2007, 09:46 | #7 |
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I hope they merge.. Nanjing have messed about for far too long and don't have anything in development. They need the resources etc of SAIC and SAIC need a decent brand.
I notice that a load of new dealers have appeared on www.mg-uk.co.uk |
16th December 2007, 11:20 | #8 |
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According to information published 'in another place' the merger is done and dusted. And have you heard the one about the return of Rover possibly as part of Tata buying JLR which would include the Rover name.
Malcolm |
16th December 2007, 18:25 | #9 | |
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Can you believe that we as a country now have sunk to this level? MG is Chinese and JLR (possibily to include Rover) is tipped to be bought by the Indians |
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16th December 2007, 18:55 | #10 |
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I think the only way forward for UK in the Manufacturing industry would be to halve the value of our assets ie. Land, housing factories etc, and halve everyones wages, otherwise we are never going to be able to compete with any company overseas.
I can only see Longbridge being involved on a very minimal scale (if at all) Who in their right mind is going to pay British wage levels when they are a fraction of this in many developing Countries.
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[SIGPIC][/SIGPIC] Newbies do now!! 1. Plenum drains..all 3 or 4 year dependent 2. Cooling fan..All speeds functioning 3. Bonnet cable divider block |
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