| Rumors swirl over Rover's future |
| Last Updated(Beijing Time):2006-02-18 13:45 |
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Chinese carmaker Nanjing Automobile is unlikely to sell its MG Rover brand to British businessman David James, despite British media reports that he wants to buy it, a source familiar with the situation said yesterday.
Several British newspapers said James' Kimber consortium wanted to build two-seater cars using the MG Rover brand and move manufacturing away from the former UK carmaker's site at Longbridge in central England.
A source familiar with the situation said no deal between James and Nanjing was imminent. The Chinese carmaker still planned to resume production at Longbridge, the source said.
"If there was a deal imminent, we would be aware of it," the source added.
James wanted to build a car based on DaimlerChrysler's discontinued Smart Roadster vehicle, according to unsourced reports in the Financial Times and Times newspapers.
Neither James nor Nanjing could be reached for comment.
Smart declined to say whether it was in talks with James but said no contract had been signed.
"More than one party has shown interest in the roadster after we stopped production in November last year. We don't comment on ongoing negotiations. The fact is that no contract has been signed now," a Smart spokeswoman said.
Nanjing bought MG Rover out of bankruptcy last year. The British manufacturing icon collapsed under debts of 1.4 billion pounds (US$2.43 billion) in April, leading to 5,000 job losses at its main plant.
Nanjing had said it aimed to revive production at Longbridge and make up to 80,000 cars with the MG Rover badge each year in Britain, but the plans have looked increasingly precarious with no deal signed six months after it bought the assets, sources familiar with the situation said.
The Financial Times said production would move to a smaller site in nearby Coventry under James' plan. A source close to Nanjing said the company remained committed to resuming production at Longbridge. (Reuters) |
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