mgf.be

[ErikB]

Longbridge 'to make cars again'

Nanjing Auto, the Chinese firm which bought MG Rover, has signed a "landmark agreement" which will allow production to restart at Longbridge.

The Chinese group has signed a 33-year lease on the Longbridge site in Birmingham with its owner, property developer St Modwen Properties. Nanjing bought MG Rover for £50m ($86m) after the UK firm went bust in 2005.

Nanjing said it was now planning to move forward with reviving production at the plant. Nanjing chairman Wang Hongbiao said he intended production of the MG TF sports car to restart in 2007.

"The MG brand is famous and we are proud to project it into an exciting future," he said.

MG Rover's collapse in 2005 cost 6,000 jobs.

'Optimism'

The lease means Nanjing will pay about £1.8m a year for the South Works section of MG Rover's former Longbridge premises.
The 105-acre area, which includes two car assembly plants, a paint shop and offices, accounts for about a quarter of the old site.
Birmingham City Council chief Mike Whitby said he had been in the room when MG Rover collapsed in April 2005.
"The sense of loss to this community and to Birmingham as a whole was profound," he said.
"But today... we can celebrate in the spirit of optimism that manufacturing will return to part of the Longbridge site."
The renewal of production should mean about 600-1,000 jobs, he said.

MG, not Rover

Nanjing's acquisition of MG Rover only included the rights to use the MG brand.

The Rover brand is still owned by Rover Group's former parent BMW.

The Rover marque is up for sale, however.

"We have several parties that are interested in the Rover brand," BMW chief executive Helmut Panke said during a recent dinner in London.

Mr Panke refused to name any potential bidders, though he pointed out that "the Chinese recognise that established brands can be very useful when entering the Western European market".

Ford would be given first refusal to buy the marque, though, under an agreement entered into when the American car maker acquired Land Rover from BMW in 2000, Mr Panke explained.

"Nothing would be done against their will, but if they want it they would have to step up and pay the sum."

(http://news.bbc.co.uk/1/hi/business/4739616.stm)

[Brooklands]

Longbridge 'to make cars again'

Op de BBC website staat in het stukje ook de opmerking: "But the lease has a six-month get out clause, allowing Nanjing to walk away".

Een ontsnappingsmogelijkheid die volgens mij aangeeft dat ze de zaak financieel nog steeds niet rond hebben. Het blijft dan nog steeds zes maanden onzeker voor wat betreft een herstart.

[MGF]

We wachten vol goede hoop af..

[Brooklands]

We wachten vol goede hoop af..

Voor de lezers die vreemd aankijken tegen een leasecontract van 33 jaar het volgende: MG Rover had in januari 2004 een contract afgesloten voor een periode van 35 jaar. Nu twee jaar later neemt Nanjing het bestaande contract over met nog 33 jaar te gaan. Maar niet te vergeten de ontsnappingsclausule.