[ROVERNET - UK] China's 40% of MG-Rover
p6rovers at yahoo.com
Fri Sep 10 03:50:28 BST 2004
--- "sspmilr at netzero.net" <sspmilr at netzero.net> wrote:
> Hi Roverists:
> Does anyone know what the Chinese intend doing with
> share of MG-Rover?
> Peter Miller
> Port Orchard, Wa.
OK. Since you asked......
Update: Shanghai Auto plans to buy UK's MG Rover -
paper Reuters English News Service 08/23/04 (C)
Reuters Limited 2003.
FRANKFURT, Aug 23 (Reuters) - Shanghai Automotive
Industry Corp (SAIC), China's largest carmaker, plans
to buy privately held British automaker MG Rover in a
bold push to grab a Western beachhead, the Automotive
News Europe weekly reported on Monday.
Quoting sources in England and China, the paper said
SAIC would boost its ambitions to become the world's
sixth-largest automaker by taking an initial equity
stake in MG Rover, the size of which was still under
It said SAIC intended to take control of MG Rover in
the long term, which would be a rare example of an
emerging-market producer taking control of a Western
SAIC will buy MG Rover, it quoted a source in China,
who it said was involved in the discussions, as
saying. When the announcement is made depends on the
progress of the negotiations, hopefully in a few
There is an absolute and definite plan which seems to
start with some kind of joint deal, it quoted an MG
Rover source as saying.
I think over the course of months it becomes more and
more Shanghai and less and less Longbridge ... Two or
three years from now I would imagine SAIC to have the
vast majority of the company. The relationship is
No comment was immediately available from either
The plan envisions producing hatchback versions of the
Rover 45 in Longbridge, England, and sedans in China,
where there is almost no market for hatchbacks, the
SAIC also sees MG Rover's 1,247 western European
dealers as a point of entry into Europe.
MG Rover, an independent car maker, has been
struggling to break even after being sold four years
ago by Germany's BMW AG (XETRA:BMWG.DE - News) for
just 10 pounds ($18).
Britain's seventh-largest private equity group,
Phoenix Venture Holdings Ltd, owns MG Rover now.
SAIC signed a cooperation agreement with Rover in June
but provided no details, saying the companies had yet
to receive central government approval.
State media in China quoted sources close to Shanghai
Auto as saying the company would buy a stake in Rover
and start producing Rover products in China.
Shanghai Auto is already the main Chinese partner of
both General Motors (NYSE:GM - News) and Volkswagen AG
(XETRA:VOWG.DE - News).
The company aims to become one of the world's top six
automakers by 2010 and has said it wants to list its
stock overseas to raise a reported $2 billion.
In July it agreed to buy South Korea's Ssangyong Motor
Co (KSE:003620.KS - News), and executives have said
Shanghai Auto would keep seeking overseas acquisitions
and develop its own brand. (Additional reporting by
Ben Blanchard in Shanghai)
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The Rover Car Club of Canada - www.roverclub.ca
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