Welcome to the MGF Register News archive - 3^rd August, 2005 to 14^th November, 2005.

Nanjing, SAIC and BMW come to an agreement over future use of Rover name?

Monday 14th November: There is increasing evidence emerging that Nanjing and SAIC have been talking behind the scenes to settle the issues that exist between the two companies since the surprise success of Nanjing in the race to buy MG Rover and the Longbridge manufacturing plant. Although no official confirmation is yet forthcoming, there has been much speculation (particularly from the Chinese press) that the two companies may come to a deal whereby use of the Rover name (with agreement from licence holder, BMW), would fall into SAIC's hands, and by return SAIC would allow Nanjing's use of Rover intellectual property rights on Rover 25 and 75 - thus permitting manufacture of both cars - MG ZT/ZTT here in the UK and MG ZR in China.
Such a move would help tie up loose ends for both parties, and enable both to "save face" - particularly for SAIC, who were stung by Nanjing's victory in the PricewaterhouseCooper-managed auction of MG Rover. Interestingly, such a move could pave the way for SAIC to set up a UK manufacturing base (possibly using the old Jaguar Brown's Lane plant) under the Rover banner, in collaboration with Martin Leech's Magma consortium - although this remains extremely speculative. But is the Longboat badge really worth £67million - the money SAIC is alledged to have paid MG Rover Group for the IPR? In the absence of official confirmation, one can only assume that this is far from being a done deal. Like everything to do with MG Rover since the April collapse, we shall have to play the waiting game to find out what happens next.

Nanjing talk with Chinese Auto Giant, FAW, as talks with GBSC are due to come to conclusion

Thursday 10th November: As the prolonged negotiations with GBSC are due to come to a close, Birmingham paper, IC Birmingham Post report that Nanjing have been in negotiations with Chinese car giant, First Automobile Works (FAW), to jointly develop new vehicles. This development is widely regarded to be part of what Nanjing Vice president, Wang Qui Jing, was referring to when he mentioned that talks with GBSC over the future of MG Rover were "not exclusive".
The planned collaboration with FAW, code-named Project 566, is thought to include building a manufacturing plant in the Nanjing Jiangning area with an annual output of 300,000 cars, with production scheduled to start within 18months thereafter. With the recent acquision of Longbridge and its manufacturing equipment, the Rover 25 and Rover 45 would be obvious candidates for such an ambitious production target.
Usefully for Nanjing Auto, FAW would bring much needed financial resources to the resuscitation effort required to bring MG sports cars back to market, as well as the development of new cars and platforms - an area that many automotive experts have cast doubts over in recent months.
Worringly for MG enthusiasts, the new company subsidiary would be called Nanjing MG Automobile - the clearest indication to date that MGs would, for the first time ever, be built outside the UK. Up to date, it has been widely thought that MG production would remain in the UK, whilst Nanjing would build cars under the "Austin" badge. Whether enthusiasts will ever be able to accept a Chinese-built MG as a genuine article remains to be seen: it's taken long enough for post-Abingdon era MGs to be broadly accepted - as many MGF and MGTF owners will testify!

Nanjing says talks with GBSC are "not exclusive"

Monday 31st October: One of the surprise announcements over the last week surrounding the on-going "will they, won't they" drama centring on Nanjing's acquisition of MG Rover, is that the 12 week consultation/ negotiation period with "business partners" GB Sports Cars (headed by Fraser Welford-Winton) is not the exclusive deal that many had assumed. IC Birmingham reports on an interview with Nanjing Auto's vice president, Wang Qui Jing, quoting Mr Wang as saying: "there are some other potential partners besides the GB Sports Car Company. We are bound by confidentiality agreements regarding those partners.
"Those talks are in process and they are in good process. The GB Sports Car Company is one of those potential partners but there are some others. We would prefer a partner, of course."
More encouragingly perhaps, Mr Wang went on to say, "It is quite natural that some people will have doubts. Time will tell - we already regard this UK business as an integral part of our plans. Why stay at 100,000 if you can sell 200,000 or more? The bigger the better."
These comments have sparked a fresh round of speculation on the future of the Longbridge plant, and the potential future of MG - with some speculating that another large automotive company may be interested in participating in a deal to develop a new business plan to revive manufacturing in Birmingham. Who these other parties may be is currently unknown. Whether this is a manoeuvre to open the door for co-operation with SAIC and Martin Leech's Magma consortium is one potential outcome - as could collaboration with any one of the other 'failed' bidders for MG Rover's assets, including Project Kimber/ David James or even Martyn Moseley's bid.
With Talks with GBSC due to reach their conclusions in the next fortnight, there may be a chance that we'll glimse what the future has in stall for Britain's last volume manufacturer soon.

MGF10 show success!

Picture links: SW MGF Group; Tony Thompson; Neil Sutton; Emma Jackman; Kris Ford; Susanne (MGFSoo) and Norman Law.

Rimmer Brothers takes up X-Part MG Rover Parts franchise

Rimmer Bros can be contacted via email mgrover@rimmerbros.co.uk, phone (+44 1522 563344) and via their website: www.rimmerbros.co.uk

Nanjing sets out business case while David James seeks to provide financial support

Wednesday 28th September: Nanjing Vice President, Mr Wang Qui Jing, yesterday sent out the clearest message yet that the Chinese automaker was committed to the future of car building at Longbridge. In a press conference held at the Longbridge factory, Mr. Wang reiterated that the business plan being worked upon with GB Sports Cars and Arup, the engineering consultancy, would see the re-employment of up to 1200 people who would build up to 100,000 cars, potentially consisting of 4 or 5 new models.
"The viability of the UK business is dependent upon the success of our new operation in China because it allows us to take advantage of a competitive global supply chain and shared new product development," said Mr Wang, adding, "our two plans must [therefore] be progressed in parallel." Mr. Wang went on to describe how Nanjing Auto had been working with its business partners, GBSC and Arup, since completing the purchase of MG Rover's assets. "This plan is based on our assessment of the market conditions in the UK and Europe, on the efficient use of those assets to be left at Longbridge and on the formation of a new management team."
In an interesting development, today's Times newspaper reports that it appears that Nanjing is already seeking financial support from the City of London to breath new life into the Longbridge site and recommence car manufacture, money that in large part may be required to regain the confidence of suppliers who were badly effected by the collapse of MG Rover in April. Remarkably, the paper also reports that David James, one of the failed bidders for MG Rover, may be positioning himself to support the new venture to the tune of £40 million, with offers of advice and support from his 31-strong engineering team. Mr. James' business plan had been, and appears to remain, to assemble vehicles for other manufacturers. Making use of redundant areas of the vast Longbridge plant would be one opportunity for him to achieve this goal, and £40 million could help buy him, and the Kimber consortium, onto the Longbridge site. How this offer would sit with Nanjing's existing business partners remains unclear: an opportunity or a distraction?

Lift and Shift or Invest and Build?

Thursday 22nd September: For the hardened followers of the continuing story of MG and Rover, it will have been hard to miss the continuing speculation over the future of the Longbridge car production plant, and by extention, the future of the Rover and MG brands. On the one hand are those reporting the presence of over 200 Chinese workers on site in Longbridge, boxing up vehicle manufacturering equipment, placing it on transport trucks, and presumably loading it all onto a slow boat to China. On the face of it, this appears to be extremely depressing news, and appears to confirm the worst fears expressed by Union representatives such as Tony Woodley (Transport and General Workers Union), that Nanjing are only interested in removing the production technology and equipment and abandoning UK manufacturing altogether. Perhaps this is exactly what is happening - but wasn't this what Nanjing said that they'd be doing all along? Their business plan, as put forward to PricewaterhouseCoopers, was to ship the Rover 25 and 45 lines, along with Powertrain (and K-series production facilities) to China, and look to produce niche, high value products at Longbridge, perhaps in the shape of the MG TF and MG ZT. What is happening now does not appear to significantly alter that original position. But it would appear that the Chinese are not immune to the negative speculation - and to this end they have held talks with Union representatives (which have been described in recent weeks as being "positive") and are now, according to local media sources in Birmingham, looking to engage with local Community leaders to try and diffuse increasing suspicion that they are looking for a quick exit from the UK.
Perhaps an encouraging sign that Nanjing, and/or perhaps GB Sports Cars are looking to the longterm at Longbridge, are reports today in The Times newspaper, indicating that Nanjing may seek Government development aid to redevelop the site - perhaps to include a new body-in-white pressing facility close to the paint works and Car Assembly Building (CAB) 2 (a facility extensively renovated by BMW in preparation for MINI that was never utilised during the "Phoenix era" following MINI's transfer to the Cowley Oxford plant). No actual application has yet been made yet - although introductory talks have been undertaken between Nanjing and the Department of Trade and Industry. Moreover, in a move that is a more concrete indication of intent, Nanjing have agreed a "licence agreement" with the Longbridge land owners, St Modwen, for continued use of the Longbridge manufacturing plant.
Nanjing may be lifting and shifting. Nanjing may not be interested in building cars in the UK. But perhaps that wasn't ever in their game plan: Nanjing's objective appears to be to offload the responsibility of UK manufacture onto GB Sports Cars. If this is in fact the case, we'd all better keep our fingers crossed that the 3 month negotiations that are on-going progress well because, who knows, at the end of the tunnel we may unexpectedly be left with an at least part-British owned MG marque, which surely is the best possible outcome any MG enthusiast could have hoped for since the tragic collapse of the company on that dark April's day?

Nanjing Reassurance: We are committed to Longbridge

The company may be down, but sales are up!
MG Rover achieved an unexpected sales boost in August. Sales of MGs went up by six per cent up to 810 during the month, while Rovers fell by a mere 12 per cent to 808 in the figures released by the Society of Motor Manufacturers and Traders (SMMT). This despite difficult trading conditions, no manufacturer support and no warranty. Perhaps this is one of the strongest indications possible of the residual strength of the two British marques.

It's the end of the beginning: Nanjing completes the deal for MG Rover.

Wednesday 7th September: With little furore or fanfare, it transpires that the balance owed by Nanjing to complete the purchase of MG Rover has finally been paid - around 7 days ago! Senior administrator at PwC, Tony Lomas, said in an email response to former Longbridge worker Annil Chandra: "The sale to Nanjing has already completed and the purchase price has been paid."
What remains surprising is the lack of public announcement as the company comes under increasing pressure, particularly from some quarters within the West Midlands, to make clear their intentions for MG Rover and paricularly the manufacturing facility at Longbridge. However, with negiotions on going with GB Sports Cars regarding the future Longbridge strategy, the continued silence may simply be a question of not having much to say. More encouragingly however, at around the time of the completion of the deal, an advert was posted in the MG Taskforce Newsletter (sent out to all ex-employees) asking for experienced Manufacturing/Product Engineers to forward CVs to Longbridge. However, the advert also indicated that it will be some months before other workers (e.g. Manufacturing) are needed. Therefore, while the precise plan for Longbridge appears to be a long way yet from being decided, there appears to be a clear intent for some form of manufacturing at Longbridge: this can only be good news for MG fans.

£53m Remains Unpaid?

Tuesday 30th August: At the time of completion of Nanjing's surprise winning bid for MG Rover, PricewaterhouseCoopers (PwC) relaxed it's initial stance on payment from demanding that funds be transferred at the time of signing the contract to permitting a 28-day 'extension'. That 28-day period expired last Monday (22nd August) - and as yet, there are no indications that the funds have been transferred. PwC remain tight lipped regarding the financial arrangements, saying: "for confidential reasons, we cannot discuss payment terms." Unsurprisingly, this has lead to a great deal of speculation regarding the deal: is it still on, how committed are Nanjing to preserving manufacturing at Longbridge, have Nanjing over-stretched themselves financially? Perhaps it is too early to speculate; those close to the deal are reported as saying that there was in fact no official deadline as such for completing the agreed payment - but Nanjing has entered an "irreversible agreement" with PwC.
Nanjing themselves refuse to comment further on the payment issue, instead concentrating on the British business plan they are formulating with GB Sports Cars (GBSC) - a plan that remains in discussion: discussions that are currently in week 3 of 12 designed to clarify the way ahead for Longbridge, the financing and the model strategy. Regarding financing, there has been some speculation that GBSC have been talking to some of the other failed bidders for the business - including Martyn Moseley, who could bring substantial and welcome additional investment. On the basis of the projected duration of talks, it could be that we shall hear very little now until the new year. Whether the outstanding funds for the completion of the purchase of MG Rover will have to wait until then remains unclear; how much longer will PwC and the major creditors be prepared to wait?

GB Sports Cars develop the framework for the future of MG

Monday 8th August: Gordon Poynter, the marketing director of GB Sports Cars, the group headed by Fraser Welford-Winton that is to run the British end of Nanjing's MG Rover operation, has been laying out the planned future of MG whereby production of new versions the TF and ZT could commence as early as the autumn of next year.
Mr Poynter said that the company wanted to develop MG along the lines of Italy's Alfa Romeo, with a range of sporting-focused cars. "We intend to fully exploit the young sporty MG brand," Mr Poynter said. "All the cars will be sporty. They will either be sports cars or sporty saloons. We are aiming to be the new Alfa Romeo."
The first necessary steps have now been taken, with advertisements to recruit 100 technical planners in the West Midlands area to prepare for the new production lines.
The intention is to hire about 2,000 skilled workers over the next four years and make about 80,000 cars a year. Nanjing also intends to ship the Powertrain engine plant to China and start making the Rover 25, 45 and 75 under the Austin brand.
The company has already picked out two major factory buildings on the vast 500-acre Longbridge site that will be used to make the new models. Mr Poynter explained: "we will only be using about ten per cent of the space and the rest of the land will be developed."

Nanjing pieces together it's UK operation