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Welcome to the MGF Register News archive - 3rd August, 2005 to 4th April, 2006
<<< Previous Page (9th April - 20th December, 2006) | Next Page (3rd August - 14th November, 2005) >>>Formal Liquidation of MG Rover has now started
Tuesday 4th April: MG Rover Group administrators, PricewaterhouseCoopers announced this week that MG Rover Group was now to enter the final stage of the administration process - liquidation - a technicality that allows the administrator to pay a dividend to unsecured creditors in the company.
According to reports in the Birmingham Post yesterday, creditors of MG Rover will receive about 5p for every pound they are owed. A total of £68.3 million has been raised by the PwC - who have paid themselves almost £10 million - towards the estimated £1.2 billion debts. But creditors of MG Rover's engine making division, Powertrain, stand to receive more - almost 19p in the pound - when the payment is made, probably early next year. That is because the sale of Powertrain raised £37.4 million but the section had far lower debts at about £200 million.
This process represents the final chapter in the long history of the British Car industry - a tragic end, but perhaps not yet the end of MG.
SOLD! MG Sport and Racing assets are sold off
Monday 27th March: With the passing of the deadline for GBSCC to purchase MG Sport and Racing - which eventually expired on Thursday, 23rd - specialist Auctioneers, Wyles Hardy and Co, put the assets of the company on sale to the general public.
The auction turned out to be something of a marathon, the 900 lots in the sale taking approximately 12 hours to get through. Reports from the sale room indicate that Regalia and workshop tools proved to be most popular with the punters - with many lots going for considerably more than the original RRP. But where there bargains to be had? If you wanted a historical MG, then the answer to this has to be an unequivocal yes. The 1999 Supersports Geneva show car went for an incredibly cheap £6,500 before auction costs - which given that this car could be used on the road makes for an incredible purchase by its new lucky owner - although what is not clear is how much work would be required to bring this car back up to Motor Show standard. The 1998 Geneva Supersports 'California' concept went for rather more money - £10,600 was needed to secure it's sale - but in this commentator's opinion still represents staggeringly good value. The highest value MGF derivative was, however, the TF500 - now fitted
with a 4-cylinder Cosworth engine. This car was eventually knocked down at £16,000.
If you are the proud owner of one of these incredible MGF/TF concept cars, please do get in touch with us - we'd love to hear more about your purchase! If any member has an 'Auction tale' to tell, please do let us know.
FOR SALE: MG Sport and Racing assets are put up for auction
Wednesday 22nd March: As the memorandum of understanding between Nanjing and GB Sports Car time-expires and GB Sports Car continue to fail to secure further financial backing that would enable them to buy the remaining parts of MG Rover, the administrators PricewaterhouseCoopers move to liquidate the last pillar of the MG Rover empire - MG Sport and Racing (aka MG X-Power). In the asset sale, being managed by Wyles Hardy, a staggering range of desirable MGs are due to come under the hammer - perhaps most significant for MGF/TF fans being the two SuperSports concepts (pictured opposite) and the X-Power TF500. The auction is due to take place this weekend (Saturday 25th) with open days for viewing the lots offered for sale on Thursday and Friday (23rd and 24th). To view the Wyles Hardy on-line catalogue, click here. However, speculation remains rife that GB Sports Cars might yet pull an eleventh-hour deal out of the bag to purchase MG's racing wing, which would see the entire sale cancelled. At present, no one is offering odds on the likelihood of this eventuality however.
Irrespective of whether GBSCC do manage to buy the outfit that built the astonishing MG SV, and irrespective of whether they are able to secure the long-looked for financial backing and thus contribute to the future plans for Longbridge, Nanjing are planning to plough on regardless. The Financial Times report that Nanjing has managed to secure Chinese bank backing for its plans to start Rover-based car production plans in China and for limited re-introduction of car building at Longbridge. For us, this is good news, as TF is very likely to be at the top of the adgenda for the rationalised Longbridge plant (although Nanjing have yet to conclude talks with Phoenix Venture Holdings who continue to claim the rights for the TF body dyes, and have demanded £2m for their sale).
In the mean time, Project Kimber are said to be still talking to Nanjing about the possibility of using the MG name for their Smart-based roadster (the new MG Midget), and possibly for rights to use the TF as a platform for a larger MG model that they'd seek to sell in the US. How this fits in with Nanjing's long-term plans for the marque remains unclear however.
Nanjing and St Modwen sign long-term lease on Longbridge site
Thursday 22nd February: It has been just announced (midday) that Nanjing have indeed signed a long-term lease for the Longbridge manufacturing site. The terms of the lease allow for a 6-month 'get out' clause, but effectively means that Nanjing have 'ownership' of the site for 33 years for use in car manufacturing.
This is great news for those involved with Longbridge - and could pave the way for MG production - most probably MG TF and MG ZT and ZTT - in the coming 12-18 months.
Kimber in talks over use of MG badge for use on Smart Roadsters: the new MG Midget?
Thursday 22nd February: David James and his team at Project Kimber have shown themselves to be notably persistent in their objective to become sportscar manufacturers - and indeed potential British saviours of MG. In recent days, the Project Kimber team have announced that they've been in talks with Nanjing about the potential purchase of the MG brand (talks that Nanjing have confirmed have been in progress). With a deal with Daimler Chrysler for the purchase of the now defunct Smart Roadster and Coupe drawing near to a positive conclusion (according to sources quoted by Reuters), the Kimber consortium appear close to bringing the dream of a new MG Midget (perhaps looking similar to that shown below) into reality.
The news that really broke into the headlines (and raised questions at Parlimentary question time) was the news that Kimber were looking to build their "MGs" away from Longbridge - perhaps at the former Dunlop factory in Coventry. However, Nanjing have since denied that MG is for sale, and the Chinese company remain committed to Longbridge. Moreover, the Kimber announcement drew angry comments from Longbridge landlord, St Modwen, who felt that David James' team were seaking to spoil the Longbridge plan ahead of the signing of a longterm lease at the site (probably for only 100 of the 400 acres of land at Longbridge) that is widely thought to be going ahead later today (Feb 22nd).
Rumours abound that the TF and ZT assembly lines remain at Longbridge - apparently the lines being reconsolidated in Car Assembly Building (CAB) 2 - and further rumours suggesting that body assembly of TF has been moved from Stadco (nee Mayflower) at Coventry to Longbridge - there is an air of optimism that at last there may be light at the end of the tunnel for MG enthusiasts. The great imponderable remains the involvement of GBSCC - nothing has been heard from this team for over a month now.
Nanjing declares that it is "Wedded" to Rover and Longbridge - but is a deal with GBSCC any closer?
Thursday 13th February: Last week, Nanjing reaffirmed its commitment to manufacturing at Longbridge - an indication that will come as some relief to many who grow increasingly concerned at a lack of a clear endpoint to this transitionary period at the 100 year old car plant. In a public announcement, Wang Hongbiao, a director and vice president at Nanjing, announced a long-term commitment to the plant which he likened to a marriage. Interestingly, there appears to have been a mild shift from the original business plan towards the position taken by GBSCC - that being the recommencement of MGTF sportscar production in the first instance, only to be followed later by "premium" saloon production at the plant.
Curiously, however, GBSCC are not mentioned in the press release - Wang Hongbiao indicates a need to collaborate with a British partner without any mention of Fraser Welford-Winton's team. It is now some weeks since talks between Nanjing and GBSCC were said to have drawn to a close - with GBSCC left to raise capital from UK and US-based investors. However, with Healey being revived independently with the Healey family's blessing - plans for a new Austin-Healey may be terminally damaged - perhaps along with any aspirations GBSCC may have had in terms of raising US capital.
The path so far has been a long way from being smooth. Rather like attempting to drive up an icey incline, progress has been beset by lack of progress and slippages. Perhaps this is the reason why Nanjing is looking, at the time-being at least, for short-term lease extensions from Longbridge land owner, St Modwen.
According to the BBC, Anthony Glossop, chairman of St Modwen, is reported as saying: "At the moment, we see no reason not to be hopeful that there's a long-term future for Nanjing at Longbridge." A six-month deal is currently being discussed (the existing lease is due to expire on Wednesday), and Nanjing are looking to negotiate a 35-year long-term lease thereafter - presumably once a deal with a British partner has been reached.
Are GBSCC out of the deal? This is not clear. Will there be new MG production at Longbridge? This is not certain, but we (at the MGF Register) are hopeful. Watch this space.
Potential agreement between Nanjing and GBSCC draws close?
Thursday 12th January: Speculation has been increasing in the last few days that there may be an end in sight to the current uncertainty over the future of the now idle Longbridge car production plant that until recently has been home to MG. Nanjing have repeatedly stated their intent to invest in UK manufacturing, and have sought to enter partnership with third parties to achieve this goal. The GB Sports Cars Company, headed by former MG Rover Powertrain head, Fraser Welford-Winton, appeared as an early favourite - and despite evidence of some waivering on the part of Nanjing, with talk of other potential partners - it appears that talks are finally drawing to a close. The limiting factor now, it seems, is money.
This week, the Financial Times reported that the GBSCC team have to secure funding from their investors - both here in the UK and from the USA. A source close to the negotiations was reported as saying: "Everything in principle is agreed. It is now up to the investors to actually put their cheques on the table." The newspaper speculates that if funding is agreed from investors, it will allow GBSCC to conclude the deal, and announce the successful conclusion of negotiations towards the middle of next week.
Those following the MG Rover/ Nanjing story will recall that the discussions over the Longbridge business plan had been scheduled to last just six weeks - and thus was scheduled to have concluded about six weeks ago. However, the talks between the two parties have proved harder to reconcile than expected. Nanjing's plan envisaged building MG sports cars and top-end saloons in Birmingham, and importing small and medium-sized cars from a new factory in China. However, the GBSCC originally started out aiming to build only sports cars, but has now agreed to a more ambitious manufacturing plan more in line with the Nanjing Model. However, this approach is sure to require considerably more funds than those initially estimated under the original GBSCC business plan.
It would seem, therefore, that the light may be visible at the end of the tunnel. Whether this proves to be daylight for new MG production in the UK, or the lamps of an approaching Chinese freight train remains to be seen.
2005
GBSCC talk to Qvale regarding US import deal for Austin Healey
Wednesday 21st December: The Irish Times today reports that GBSCC is drawing close to concluding a deal to buy MG Sport and Racing, the company that owns the X-Power brand and builds the MG SV, from the administrators, PricewaterhouseCoopers. According to the report, a deal is hoped to be completed before Christmas, and is thought to complete another part of the jigsaw that should see GBSCC re-starting vehicle manufacture at Londbridge under the MG and possibly Austin-Healey name-plates. Key to this deal has been negotiations with Qvale - the US-based automotive dealership concern that owned the platform (the Qvale Mungusta) that was sold to MG Rover back in 2001. Until now, Qvale had been blocking the sale of SV to a third party, saying that monies promised by MG Rover for the car remained unpaid. However, the objection does now appear to have been overcome, and it is thought that a part of the deal could involve Qvale being nominated as being the importer for Austin-Healey and MG sports car. Qvale was the company that originally brought MG to the American masses back in 1947.
The importance of SV to the future plans of GBSCC remains somewhat unclear - but it is thought that the SV platform could spawn a new Austin-Healey, as has been speculated upon in Autocar in recent weeks.
It would seem that the new year could bring more news - the protracted talks between Nanjing and GBSCC are expected to draw to a conclusion, and the sale of MG Sport and Racing be completed. As an MG fan, I am hoping for a happy octagonal new year!
Another tantalising glimpse of what could have been: Peter Stevens Design
Friday 16th December: Former styling guru at MG Rover, Peter Stevens, has created a new web page to launch his new design consultancy born from the collapse of MG Rover Group. The website, http://www.peterstevensdesign.co.uk/ looks very slick and professional, and contains some beautiful cars from Mr Stevens' extensive portfolio - but what makes particularly interesting reading for MG fans are the revealing concept drawings in the MG-Rover section of the website.
TF Evolution
In it, we can find tantalising clues as to how the MG TF could have evolved, had MG Rover survived beyond the crash in April. Clearly based on the old car (note the windscreen surround), the new face lifted TF looks extremely contemporary, with some hints of Smart roadster and Toyota MR2 about the proportions and detailing, but the overall effect is clearly "new MG". The image is clearly a styling concept - the wheels are absolutely huge - compare the upper and lower images opposite: the concept's wheels dawf the 16" alloys on the TF. However, one feature that could have carried through to production is the higher waistline of the car - note how much higher the doors are relative to the driver's shoulder in these images. The effect would have been to make the driver feel more "sat in" rather than "sat on" the car, and would certainly represent quite a dramatic change in feel to the whole car. Interestingly, this design concept could signal one potential future design direction of MG, if and when TF production restarts at Longbridge under Nanjing/GBSCC.
Austin Healey - another clue!
Perhaps incredibly, MG Rover were actively investigating a future for Austin Healey as part of its brand portfolio prior to the company's collapse - as this picture (code named "Project Viking") shows. While some outside observers have wondered what GBSCC had bought when it was announced that Nanjing was to sell the brand to Fraser Welford-Winton's team, it would appear that it was this project that they were talking about. Project Viking has been suggested to be a part of a two-roadster development programme based around an alloy space-frame chassis, and potentially using various Rover 75/ MG ZT componentry. How far evolved this project became is unclear, but perhaps the lack of photographic images of the car would suggest that it had progressed no further than the drawing board.
Interestingly, Project Viking was a two-car programme. Clearly, one of those sports cars was an Austin-Healey. The other was an MG - to be positioned above the best-selling TF, and aimed more towards the Porsche Boxter (images to be found on Peter Stevens' website). The parallel development of two sports car brands is intriguing - and not seen since the BMC glory days. It would appear that MG Rover saw a future in MG as a sports car manufacturer in conjunction to production of Austin Healey as a way of improving revenue from potentially profitable new market segments away from mass production. It may be that GBSCC is poised to pursue exactly this kind of business model should they successfully conclude negotiations with Nanjing.
One thing that is for sure: any new GBSCC led car project is unlikely to look like these Peter Stevens' rendered originals; Nanjing's working relationship with Arup means an all new styling team - it will be interesting to see how the MG, and perhaps Austin Healey marques are re-interpreted for the post-Rover collapse market needs.
Rimmer Bros relaunch MGF/TF roll hoops
Tuesday 13th December: Rimmer Bros Ltd now have a new generation of Roll Hoops available to suit the MGF and TF fitted with either glass or plastic rear window equipped soft top. The hoops sit behind the headrests giving the car "a true sports car look," and since the hoops are integrated into the chassis structure they give extraordinary strength to the impact absorbing high tensile bar and tube configuration. They come in two finishes, polished Stainless Steel £215.37 + vat or Matt White Silver £183.22 + vat. An addition fitting kit is required to complete the installation of the bar at a cost of £41.84 + vat.
Rimmer Bros Ltd can also offer a tailor made Windstop to fit over the new generation Roll Hoops, simply fitted in less than 30 seconds and retained with poppers this stylish product will reduce wind and noise when travelling with the hood down. The Windstop costs just £79.63 + vat.
For further details or to place an order please call Rimmer Bros Ltd on 01522 568000 or email sales@rimmerbros.co.uk.
Is Austin Healey the future for Longbridge?
Tuesday 6th December: It has been a bemusing week for MG Rover watchers, and sadly the future of Longbridge and the MG marque looks no clearer than it did a month ago. In the first instance, there has been a positive announcement of sorts: according to various media reports that GBSCC have purchased the historic and emotive Austin Healey brand from Nanjing, in a deal not necessarily connected with any future working relationship between Nanjing and GBSC. This week's Autocar shows an artist's impression of how an Austin Healey 5000, based on the MG SV platform, could look, along with some renditions of an extensively face lifted MG TF (using, Autocar claims, Audi engines). However, no official confirmation has been forthcoming from GBSC to either confirm or refute this development, which was first reported in the Financial Times late last week.
Moreover, it is unclear whether the venerable Austin Healey brand is Nanjing's to sell: certainly the patent office still shows the rights to the Healey name residing with the Healey family's automotive consultancy. Moreover, a former MG Rover Group bidder, Krish Bhaskar, may have claim to the brand's use.
Interestingly, Professor Bhaskar's consortium has once again indicated that it is interested in the Longbridge site, and perhaps prepared to invest in a future business with Nanjing, saying: "[we] have approached Nanjing Automotive with a view to exploring opportunities to redevelop sustainable car production at the Longbridge site." Apparently, Professor Bhaskar continues to retain the support of American Arabian Investment & Development Holdings, Inc (AMAR). The investment trust, with offices in the United States, Egypt and Germany, has earmarked funds of up to 1 billion Euros to finance the project. Given the precarious financial condition of the British side of Nanjing MG Auto Corp, Nanjing may well consider listening, but clearly, there is quite some way to go before the tragic Longbridge saga is finally brought to a definitive conclusion.
Nanjing write to reassure dealers
Thursday 24th November: An undated news statement issued to former MG Rover dealers has come to light on the MG Rover enthusiasts' forum. In large part is confirms previous press releases made by Nanjing Automotive Corp - but unfortunately is somewhat short on detail as to how the UK operation is to be financed, and who the British partner will be. The omission of any mention of GB Sports Cars is perhaps curious, but may not be significant. The release is elaborated below.
NANJING AUTOMOBILE (GROUP) CORPORATION
331 ZHONGYANG ROAD, NANJING 210037, CHINA TEL: (025)83432417 FAX: (025) 83417873
Comprehensive Planning & Start-up of MG Project by Nanjing Automobile
A Letter to Dealers of former MG Rover by NAC
NAC is one of the earliest established automobile manufacturers in China, whose products cover vehicle products such as passenger cars, trucks, buses etc., parts such as transmission, steering gear, clutch, brake gear, front axle, rear axle, water tank, vehicle instrument etc. as well as other areas such as iron foundry, aluminium foundry and tooling etc. With the development of globalization in auto industry, NAC has established joint venture companies with Fiat Auto and Iveco in Nanjing, engaged in the production of passenger cars and light duty buses, as well as more than ten parts manufacturing joint venture companies with some internationally renowned parts manufacturers such as Valeo, Lear, Brembo and so on. Up till now, NAC has, through its wholly owned subsidiaries and the joint venture companies in which it is a party, produced a series of products with fairly good reputation in the market of China, such as Yuejin brand trucks, Fiat brand passenger cars and Iveco brand light duty buses.
It is a significant step taken by NAC in its global strategy to acquire the assets of MG Rover and Powertrain Ltd (MG Assets).
In light of the requirements for the further development of auto industry in China and that of the world as a whole, it has become the development trend of Chinese auto enterprise to extend the business out of China, to carry out independent development and to forge independent brands. After its successful acquisition of MG Assets, NAC is now undertaking the overall planning of MG project, of which, some part is already underway for implementation.
NAC has now decided to establish production bases of MG project at both Longbridge and Nanjing. On one hand, the production of some products with rather high cost if produced in the U. K., such as engine, transmission and medium and low end vehicle products, will be transferred to China, where a mature supply chain with low cost will be set up step by step. On the other hand, with part of production facility retained in the U.K., the original Longbridge site will be integrated to resume the production of MG-TF sport car and part of high end products (including ZT and ZT-T). Meanwhile, by making full use of the prominent R & D capability and human resources in the U.K. as well as that of China, the Euro IV engines and a new generation of vehicles will be developed and then produced in both China and the U.K. in the near future. Then, the sales network of China established by NAC and the global sales network of the former MG Rover can be used to meet the demand of various markets in China, Britain, Europe and North America.
Through the implementation of this strategy, NAC will be able to promote its own brand image, cultivate independent development capability, establish global sourcing platform and sales network and develop two strategic production bases, which will, by making full use of acquired MG assets, giving full play to the advantages of China and Britain and sharing the development cost of new products between two sites, launch to the global market MG brand products characterized with market orientation, high technology and competitiveness, thus eventually achieving the strategic goal of MG project in China and the U.K. as a whole.
Currently, NAC is in the process of making detailed plan for the strategy implementation in the U.K. and China and has taken steps on some important strategic issues such as Longbridge Site integration and Euro ? engines development. On the other hand, NAC is also actively seeking for strategic partner aiming to operate the business in the U.K. by means of joint venture.
In the strategic plan made by NAC, Nanjing and Longbridge are indispensable to each other. Without the successful business in China, the supply chain and finished products with low cost will be impossible; While the sustaining and enhancing of the market share and MG brand in the U.K. and Europe will be totally contingent upon the success of the business in the U.K. Therefore, it is a key point in the global strategic plan of NAC to re-establish a new sales network based on the original one of former MG Rover.
In the current plan, the production will be resumed in the Longbridge plant at the beginning of 2007, when MG-TF, MG-ZT and MG-ZT-T will appear on the market again through sales network in the U.K. and Europe. The products to be re-launched into the market will preserve the original British style, reliable and stable quality and robust power, and be sold with MG brands. Meanwhile, some other products like MG-ZS and MG-ZR will be produced by the company in China and then supplied to the market of China and that of the U.K. and Europe as well.
We believe, the global sales network of former MG Rover is actually a valuable treasure, and to make full use of this treasure is a key factor for the success of NAC in MG project.
On one hand, we appreciate the good faith and support of each dealer towards the former MG Rover, on the other hand, we really hope that when the models like MG TF is re-launched into the market, a renewed cooperative relationship would have already been established between the dealers and NAC. Before MG products are launched into the market again, we will try to maintain MG brand and sales network and promote the communication with you, sharing with you information like our progress in products modification and development.
Granted, it will take some time to integrate the Longbridge site and restart the production there, but we are firmly confident on our strategic plan, on the dealers of former MG Rover, and on a brilliant future where such cooperation will be desirable.