David James is still keen to bring back MG Rover

David James is still keen to bring back MG Rover

	Published : Fri, 17 Feb 2006 10:05 By : Amy Watts Print this Story

LONDON: Corporate troubleshooter David James, who had lost out in his bid to buy the bankrupt MG Rover, is learnt to be negotiating with Nanjing Automotive of China, which now owns the company, for a joint venture so that he can build a car based on Rover's now discontinued two-seater Smart Roadster.

According to news reports, James is said to have mooted a proposal to shift whatever operations at the company's Longbridge plant in Birmingham to a smaller site in Coventry, where the proposed car can be built.

James is said to have suggested to Nanjing that his Project Kimber consortium could forge the joint venture with the Chinese company to build the new car and he would buy the rights for Smart Roadster from DaimlerChrysler. He is understood to have already offered around 14 million pounds to DaimlerChrysler for the design, technology and equipment of Smart Roadster.

James has plans to buy the now defunct Dunlop tyre factory at Coventry.

Project Kimber is also reported to have put forward the proposal to move the MG Rover plant to Coventry to the department of trade and industry and is exploring a possible 3.5-million-pound grant for the project.

There are also reports that James is exploring an option to buy the MG Rover brand from Nanjing.

Meanwhile, the Chinese automaker is reported to be is in talks with GB Sports Car, which was also a bidder for the Rover assets, for manufacturing cars at the Longbridge plant. The plant had some 6,000 employees before Rover went into administration.

Sources in the automobile industry say James has the support of private equity firm Access Capital and European American Securities.

The Conservative Party is supporting James in his attempt to bring back the MG Rover brand to Britain. Shadow trade and industry secretary
Alan Duncan has been quoted as urging the department of trade and industry to help James in this revival effort. A department spokesperson confirmed about the talks, but said the department has not received any request for help from James.

James' Project Kimber is an acquisition vehicle and it has a team ready to take up production immediately.

Nanjing's acquisition of MG Rover, with the implied support of the government, seems to have gone awry. The Chinese company has almost made it clear that it will not be making cars in Britain as it does not have the working capital to revive the plant at Longbridge. It is understood to have moved all the equipment at the plant, which it needed to support its manufacturing, to China.