Post by bgluckman on Aug 24, 2004 11:27:17 GMT -5
Say what you will about Rover, but really, all it would take for this brand to lose its dodgy reputation in Europe would be some good cars. More importantly, MG's rep in the US is still fantastic, and this would give Shanhgai Automotive a way to sell cars and SUVs the US.
China's largest automaker to buy England's MG Rover, sources say
BRADFORD WERNLE | Automotive News Europe and ALYSHA WEBB | Automotive News
Posted Date: 8/24/04
Shanghai Automotive Industry Corp., China's largest passenger carmaker, plans to buy MG Rover, say sources in England and China.
SAIC will boost its ambitions to become the world's sixth-largest automaker by taking an initial equity stake in MG Rover. The size of that stake is still under discussion.
MG Rover denied that SAIC will take over the company.
But sources in China and at MG Rover in Longbridge, England, say SAIC would like to own MG Rover outright and will take control of the British automaker in the long term.
"SAIC will buy MG Rover," said a source in China who is involved in the discussions. "When the announcement is made depends on the progress of the negotiations, hopefully in a few months."
A source at MG Rover confirmed that there is a longer-term plan for the Chinese manufacturer to take over the British company, though terms and details have not been ironed out.
The transaction would be in steps, and it could be several years before SAIC would own all of MG Rover.
"There is an absolute and definite plan, which seems to start with some kind of joint deal," the MG Rover source said.
"I think over the course of months it becomes more Shanghai and less Longbridge."
The source added: "Two or three years from now I would imagine SAIC to have the vast majority of the company. The relationship is good."
The deal would give MG Rover engineers the money to produce the crucial replacement for the Rover 45 lower-medium car, which has been delayed repeatedly.
BRADFORD WERNLE | Automotive News Europe and ALYSHA WEBB | Automotive News
Posted Date: 8/24/04
Shanghai Automotive Industry Corp., China's largest passenger carmaker, plans to buy MG Rover, say sources in England and China.
SAIC will boost its ambitions to become the world's sixth-largest automaker by taking an initial equity stake in MG Rover. The size of that stake is still under discussion.
MG Rover denied that SAIC will take over the company.
But sources in China and at MG Rover in Longbridge, England, say SAIC would like to own MG Rover outright and will take control of the British automaker in the long term.
"SAIC will buy MG Rover," said a source in China who is involved in the discussions. "When the announcement is made depends on the progress of the negotiations, hopefully in a few months."
A source at MG Rover confirmed that there is a longer-term plan for the Chinese manufacturer to take over the British company, though terms and details have not been ironed out.
The transaction would be in steps, and it could be several years before SAIC would own all of MG Rover.
"There is an absolute and definite plan, which seems to start with some kind of joint deal," the MG Rover source said.
"I think over the course of months it becomes more Shanghai and less Longbridge."
The source added: "Two or three years from now I would imagine SAIC to have the vast majority of the company. The relationship is good."
The deal would give MG Rover engineers the money to produce the crucial replacement for the Rover 45 lower-medium car, which has been delayed repeatedly.
