SAIC – which owns the rights to the Rover 25 and 75, but not the Rover name – and Yuejin Motor, owner of Nanjing Automobile Corporation (NAC), which in turn owns the MG brand and a small section of the former MG Rover car plant in Longbridge, UK, are merging their automotive operations but there is still no firm start date for UK car production.
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A statement said: “Following the integration there will be a further input of resources into Longbridge. With the TF being the first product launched, it will be followed by other new MG products.”
Asked to expand on that, UK spokeswoman Eleanor De La Haye said on Wednesday: “We have to wait for all to become clear.”
She added it was also too early to give a date for the start of MG TF roadster production at Longbridge, which was postponed late last year after component supply problems, but hoped to have more details available around the end of January.
According to the ‘cooperation agreement’ signed recently in China by the two automakers, the NAC automotive businesses will be fully integrated into SAIC.
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By GlobalDataWithin the business units of NAC, complete vehicle and first-tier parts business will be integrated into SAIC Motor, a public listed company largely held by SAIC, while other businesses, related to components, service and trading, will be within a newly established joint venture, Donghua Company.
“After the merger of the two companies, business planning, R&D, sales and marketing, manufacturing and supply chain management will be fully integrated, contributing towards synergy and better performance throughout home and overseas markets,” the automakers said in a statement.
“The long term objective of the cooperation is to build SAIC into China’s largest automaker with global competitiveness while [developing] NAC into a leading manufacturing base in China.”
The companies also said cooperation would strengthen the functions of R&D, sales and marketing and manufacturing at Longbridge.
“The UK business is vital for SAIC to enhance its multinational operations competence.”
