Chinese car maker to revive MG Rover production with 1200 jobs |
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Wed, 28 Sep 2005 14:05
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LONDON: Chinese carmaker Nanjing Automotive today confirmed plans to approach City investors for a joint venture in reviving MG Rover. The project will require about £40 million and is expected to create at least 1,200 jobs at the ailing British car manufacturer’s Longbridge facility.
If all goes according to the new owner’s plans, production of two existing MG models – Rover 75 and the MGTF sportscar, could restart sometime next year, a spokesperson for Nanjing said. The confidence was echoed by Tony Woodley, general secretary of Transport & General Workers’ Union, who said he had met the company representatives and was “convinced about their plans.”
The Chinese automotive major had bought Rover’s assets for an undisclosed sum (believed to be a little over £50m) in July after the UK car maker buckled under its £1.4bn debts, £415m pension deficit and 6,000 job cuts. Rover’s administrators Pricewaterhouse Coopers had then said that the Chinese company planned to relocate the Powertrain engine assets along with the assembly line for Rover 25 and 45 models to China but also promised to “retain some car production”.
Nanjing’s Vice President Wang Too Jing said his firm remains committed to restarting MG Rover production by next year. Once the production gets into gear at the Longbridge facility, it would be speeded up by 2007 to reach a target of 100,000 cars a year, he said.
Their original plans included building an R&D and technical facility in the UK.
The plans will be discussed with GB Sports Car Company - the Fraser Welford Winton-led consortium that has offered financial backing and management for the renewed Longhorn facility. Welford-Winton is the former managing director of Rover’s Powertrain engine-making division.
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