Not Over, Red Rover
The Age
Saturday January 5, 2008
THE two Chinese car makers that carved up parts of the failed UK-based MG Rover Group have announced the rival companies will merge.
When MG Rover failed, Shanghai Automotive Industry Corp (SAIC) and Nanjing Auto swooped on different parts of the business. SAIC bought the rights to two Rover models, while Nanjing swooped on the MG brand.SAIC, which is keen to build its own brand of cars (even though it has China-based joint ventures with General Motors and Volkswagen), wants MG as a platform to boost sales internationally."We will continue to promote the MG brand on the overseas market to boost our exports," SAIC Motor president Chen Hong said at a briefing in Beijing.He said SAIC would also revive production of MG cars in Britain as early as possible.The merger of the two Chinese car makers came as Nanjing Auto said it was ending its sedan joint venture with Fiat. Five days earlier, General Motors announced it will sell more than a million vehicles in China this year. -- ANDREW HEASLEY, WITH AFP
© 2008 The Age