China’s Nanjing Automobile is asking former MG Rover dealers in Europe to be patient until the company begins producing new vehicles in Longbridge, England, according to Automotive News Europe.
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In a letter to dealers and importers, leaked to the trade newspaper, Nanjing said: “We believe the global sales network of former MG Rover is a valuable treasure, and to make full use of this treasure is a key factor for the success of Nanjing in the MG project.”
MG Rover’s Longbridge plant closed in April after the financially troubled British carmaker collapsed. Nanjing bought MG Rover’s assets in July for GBP54m (EUR79m). Nanjing’s letter said production will resume at Longbridge at the beginning of 2007 when the MG TF sports car and ZT lower-premium sedan will appear on the market again through the sales network in the UK and Europe.
Alan Pulham, former director of the UK-based National Franchised Dealer Association, was sceptical that dealers would be willing or able to wait for the start of production, given all the unresolved confusion surrounding MG Rover.
“How do you hang on until they’re producing cars?” he said. “Nanjing will have to find a new network.”
Richard Cort, president of the UK MG Rover Dealers’ Council, said it would make business sense for any dealer to “look for a way forward” by adding other brands’ franchises.
But Cort remained optimistic about MG Rover’s future because of what he was told during meetings with Nanjing since it bought the carmaker. “The discussions were positive, we explored [some subjects] and there was what I would call a semi-proposal,” Cort said.
Nanjing said it is making “important steps” on strategic issues such as the integration of the Longbridge site with its Chinese operations and the development of Euro 4-compliant engines.
The carmaker is seeking a joint-venture deal with GB Sports Car Co. to restart production at Longbridge. GB Sports Car is a consortium led by Fraser Welford-Winton, ex-managing director of Powertrain, MG Rover’s former engine division.
