A report in The Economic Times of India suggests that MG Rover is at an advanced stage in negotiations to acquire manufacturing capacity in Poland that could be used to assemble the Telco Indica small car. From there it could be exported to other markets in Eastern Europe.

Telco (Tata) is also interested in shipping the Indica to Britain where Rover dealers are thought to be keen on a sub-Rover 25 model to fill the void left by the discontinuation of the Rover 100 (formerly Metro) supermini more than two years ago. The report says that Telco is at an advanced stage in Indica British shipment negotiations with MG Rover.

Quoting ‘sources’ the Economic Times report also said that MG Rover is close to taking over the ailing FSO Daewoo car plant in Warsaw, which was left out of GM’s Daewoo Motor assets purchase. 

The report says that under the proposed deal MG Rover would take a stake in the operation of at least 10% and produce its own range of models as well as Daewoo’s Matiz, Nubira and Lanos vehicles. The report adds that the proposed deal should be ‘completed within months’.

Stewart McKee, MG Rover’s PR Director, told just-auto that discussions were taking place both with Tata over product supply and with the Polish Government concerning the FSO Daewoo facility, but he emphasised that no conclusions had been reached in either case. He added that the debt-for-equity negotiations involving the FSO Daewoo plant are complex. Under the proposals creditors take a stake in the new company and MG Rover takes over the operation of the plant, also gaining a stake.

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