Chinese Marriage Should Strengthen MG Brand, Edmunds
SHANGHAI — We told you two weeks ago about the impending marriage of two of China's oldest vehicle manufacturers, Shanghai Auto and Nanjing Auto, and promised that details would follow. Some of the fine points are just beginning to emerge.
The new alliance will create China's largest auto company. But more importantly, as far as enthusiasts are concerned, it should help strengthen the newly resurrected MG brand, especially in Europe and North America.
According to government and media sources in China, SAIC will effectively control Nanjing Auto, which will continue to operate as a stand-alone entity while reporting to Shanghai.
You may recall that both companies divided up the assets of the bankrupt MG Rover operation in England, with SAIC getting the intellectual property and blueprints while Nanjing got the tooling and the mothballed U.K. factory.
Out of those assets grew two new, albeit similar midsize sedans based on the old Rover 75: The MG7, developed and sold by Nanjing, and the Roewe 750, developed and sold by SAIC. Under the terms of their new alliance, both cars and both brands will continue, with Roewe aimed primarily at the Chinese domestic market and MG focused mainly on export markets.
Nanjing reportedly will supply V6 engines to both brands, and will be responsible mainly for production of both models, while SAIC will take the lead on sales, including exports.
Still unanswered are questions about the viability of the proposed MG assembly facility in Oklahoma. Stay tuned.
What this means to you: State control over what will be China's largest automaker should ensure the continued flow of cash and official support for MG.
Print | posted on Monday, August 20, 2007 2:45 PM