Exactly so. Living in the same local radio and TV area as Longbridge (MG
Rover HQ) I always listen with great care to the words actually spoken by
John Towers, with his own voice, and not some nth-hand reporting from
someone who may or may not have an axe to grind like so many in the UK seem
to.
SAIC will own 70% of the joint venture in China, and all the intellectual
property rights. MG Rover will own 30% of the joint venture, putting in
know-how and technology, in return for a cash injection to MG Rover from
SAIC. MG Rover will remain wholly owned in the UK. That's the story from
the horse's mouth so far.
It is my supposition that MG Rover will continue to develop niche vehicles.
Joint-venture vehicles will be sold in the UK, quite possibly Rover-badged
(a la Tata Indica) and quite possibly using the floor pans for MG products,
again as has happened before, as well as hopefully continuing to produce
cars like the TF on their own. I think they really are getting close to the
wall, even the Rover 75 and TF coupes are only designated 'concept' cars,
implying they don't have the cash to put relatively simple changes into
production. After the abortive attempts at linking up with China Brilliance
and Proton even the current attempts seem to be stumbling. Reports (more
axes grinding?) have said that SAIC are annoyed at MG Rover 'announcing'
them before final agreement, and just this week Tata are reported (!) as
saying they will assume any links with MG Rover are broken if they tie-up
with SAIC.
PaulH.
----- Original Message -----
From: "Carl French" <leylandauto@yahoo.com>
To: "Graham McCann" <gmccann@webone.com.au>; <mgs@Autox.Team.Net>
Sent: Tuesday, December 07, 2004 12:28 AM
Subject: Re: MG Rover Goes East or is it West?
> SAIC would not be buying 70% of MGR as the article states. They would have
70% of a new, joint venture. There are several good and bad points to the
deal which is still being negotiated.
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