Blog: Jack Yan on SAIC
Dave Leggett | 11 April 2005
The MG Rover/Longbridge crisis is very much in the news here today, an issue that is also playing into the more general political discourse in the news media of the General Election campaign (though party political differences on the approach to the specific problems of Rover are, thus far, small). There is some respite for the Longbridge workers in that a government loan has been made to ensure that they get paid this week, although there is no prospect of production starting up. The crisis is sure to run and run in the news here this week.
It sounds like SAIC is being pursued as the main lead right now with the hope that following MG Rover's passing into administration a new deal can be resuscitated that meets Chinese concerns on future liabilities. Good luck to all concerned on that one.
Below is a link to a website that provides a wealth of information on Rover, its brands and its history. But if you check 'Latest updates' and then click on the blog area, there's an interesting posting 'The Chinese' by Jack Yan that considers the proposed Rover deal in its Chinese political context as well as the broader brand issues for a company like SAIC with global ambitions. Well worth a read if this subject interests you.
Today is also the first time since the crisis broke that I have heard the name John Moulton (of venture capitalist Alchemy) mentioned. He was interested in a reduced size MG sports niche business model back in 2000 and, as BMW's preferred buyer, had it snatched from under his nose by Phoenix. He could well be interested in something like that again, but is understandably being cautious with his words so far.
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