Blog: Austin-Healey at Longbridge?
Dave Leggett | 28 November 2005
Memorandums of Understanding (MoUs) between prospective partners are fine, as far as they go. As a summary of where the two parties ostensibly want to go together they are often a significant building block on the way to doing a deal. But plenty of MoUs are later consigned to the bin when negotiations fail over the real stumbling blocks and deal breakers, those difficult issues that are often unresolved to the last.
Unidentified people close to the talks between Nanjing Auto and GB Sports Cars have been leaking to the Financial Times. Now I’m not necessarily saying that it is not indicative of a pending deal – it could be that the talks really are going well. But I wouldn’t get too excited just yet. Wait till they have gone public and its all signed before imagining the revival of the venerable Austin-Healey name and lots (not that many perhaps) of happy Longbridge workers. I can think of reasons why it could be in the interests of either party to leak things to the press at this stage.
Nanjing Automotive Corporation (NAC) has set out its initial plans to revive the MG brand and return low-volume car production to the Longbridge site in the UK’s West Midlands....
I'm starting to get a small idea of the scale of things here in China, but really, I'm only scratching the surface of this vast country....