Rover firm unveils factory
Nanjing, the car company that bought MG Rover, was unveiling its huge new factory in China today as it battles with rival Shanghai Automotive to be the first to get its Rover clone cars into dealerships.
While production of MG TF roadsters at Nanjing Auto's Longbridge site is unlikely until May or June, China's oldest car maker is celebrating its 60th anniversary today by launching production in China of the roadster and the MG7, which is Nanjing's version of the Rover 75 saloon.
Musicians from the City of Birmingham Symphony Orchestra have flown out to play at the grand unveiling.
In the run-up to full-scale production, Nanjing has been introducing workers to minute details of British motoring heritage before they spend their afternoons getting hands-on experience with factory equipment shipped from Longbridge to China in 5,000 containers over the past two years.
Behind all the glitz and pomp of today's ceremony, Nanjing is in a race to get its version of the old 75 into Chinese car dealerships before its rival Shanghai Automotive Industries Corporation (SAIC).
SAIC was the company originally in talks to buy and save MG Rover. When it pulled out in 2005, the move pushed the Longbridge car giant over the edge with debts of £1.6 billion and the loss of 6,000 jobs.
SAIC then became a bidder to buy up the collapsed business but was beaten by Nanjing which paid £53 million. Earlier in its negotiations, SAIC had paid Rover £67 million for the blueprints and design rights to its Rover 75 and 25 models. After the collapse, Nanjing got the right to build cars using the MG brand name.
But neither company won the Rover name. This was still owned by BMW, which sold the car company to John Towers and the Phoenix Four back in 2000.
Last year BMW sold the Rover name to Ford, which wants to protect its Land Rover brand name from rivals.
As a result, neither Nanjing nor SAIC can use the Rover name.
The result is Nanjing's MG7, which goes into full production today, and SAIC's Roewe 750, launched in October and already winning advanced sales in the thousands.
Both cars are being made for the home market in China with heavy emphasis on British car-making tradition and quality.
The Roewe is also known as the Lu-Sheng, or Road Splendour, 75, while Chinese customers are being told that MG stands for "Modern Gentleman" – in fact it comes from Morris Garages.
Both companies are furiously trying to get their executive level saloons on sale first in a hugely competitive market.
Ten years ago there were almost no privately owned cars in China.
By the end of 2005 there were almost 25 million and the country has more car brands than the USA.
