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New MG in 18 months
Rover's new owners, meanwhile, have said that they hope to roll out the
first of a range of MG sports saloons within 18 months.
Jon Moulton: "We won't compete in the mass market."
Jon Moulton of Alchemy Partners said his firm would make sure to shift the
current stocks of the Rover 25, 45 and 75, but expected the Rover brand to
"decline".
The new firm will be called MG Cars, trying to connect to the brand's
tradition of UK-built sports cars. Mr Moulton said the company would not
compete in the mass-market but try to become a mid-volume producer in the
niche-market of sport saloons.
MG aims to produce less than 100,000 cars a year.
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Some info on from the Press conferences - written by Roger Parker Tamworth
on the MG BBS.
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This mornings press conferences were interesting in not only what was said,
but was not!
Longbridge will continue to make cars, but at a very significantly reduced
level. In the short term the existing models 25, 45, MGF and Mini will
continue. Mini will end production by the Autumn and stocks to be sold by
the end of 2000. Existing 25 and 45 models to have variants in the range
reduced and some changes to be introduced to the specs. The current 5 months
stock levels of new cars currently not sold to be cleared by methods not
disclosed.
MGF to continue and clear hint that there will be some changes for the
model.
All existing models to continue until the end of their natural life. That is
likely to be dependant on the sales of these models.
All current dealer and spare parts contracts to be honoured.
The future models of the MG Car Company will be 'sporting cars' and will
include both 'sports cars' and a 'sporting family car'. ALL future models
will be based on the aluminium and composite construction methods as
pioneered by Lotus and Hydro. Very significant development and production
cost savings to be made this way.
The new company aims to be a 'mid sized producer' with a sub 100,000 unit
per annum production rate. This with the new models.
Major mechanical components to be bought in. Engine and gearboxes
specifically mentioned and said to be because the future size of the company
was too small to be able to support the development and production of these
units in such small volumes.
Rover 75 to be continued to be sold alongside, but this is made at Cowley
which is being retained by BMW for Mini production. Some areas of Longbridge
also remaining under BMW control so this probably is where componants for
the new Mini are being made and are not going to be moved.
The commitment to the existing dealer network, and this included the current
overseas dealers, does not indicate any desire to broaden the current market
area. This means expansion to USA and other untapped markets is not
envisaged, at least not at this stage. I also wonder whether a sub 100,000
unit annual production is enough to satisfy all markets AND the US market?
Ford have bought Land Rover, as Alchemy did not have the funds to buy Rover
and Land Rover.
There are massive implications of this break up as there will be separate
companies making this and that, which are all used in one or more vehicles
now owned by separate companies. This is going to be a massive job to tie up
all the loose ends and is no doubt why the comments today are of 'the done
deal', but which won't be signed sealed and delivered for about 6 weeks.
Lastly many jobs are sure to go and not just at Longbridge. I'm not in the
gambling game, but it's likely to be thousands in total. This will create a
massive blow to Birmingham.
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Cheers,
Neil.
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