[ROVERNET - UK] China's 40% of MG-Rover

Fritz Rauschenberg wfritz at mindspring.com
Sat Sep 11 01:23:18 BST 2004


My guess is that the Chinese bought MG/Rover to gain engineering & manufacturing
expertise & then dump it when they get all the knowledge out that they need to improve
their own lot.

Fritz Rauschenberg
Atlanta, GA

Eric Russell wrote:

> --- "sspmilr at netzero.net" <sspmilr at netzero.net> wrote:
>
> >
> > Hi Roverists:
> >
> > Does anyone know what the Chinese intend doing with
> > their
> > share of MG-Rover?
> >
> > Peter Miller
> > Port Orchard, Wa.
> > USA
> >
> 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
> discussion.
>
> 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
> brand.
>
> 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
> months.
>
> 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
> good.
>
> No comment was immediately available from either
> company.
>
> 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
> paper reported.
>
> 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)
>
> =====
> Webmaster & Magazine Editor:
> The Rover Car Club of Canada -  www.roverclub.ca
>
>
> __________________________________
> Do you Yahoo!?
> New and Improved Yahoo! Mail - Send 10MB messages!
> http://promotions.yahoo.com/new_mail
>
> _______________________________________________
> rovernet mailing list
> rovernet at lyris.ccdata.com
> To unsubscribe, go to this web page, look near the bottom and follow instructions:
> http://mailman.nipltd.com/mailman/listinfo/rovernet





More information about the rovernet mailing list