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

[Stephen Beer]

On the contrary,
I believe they have a genuine, sincere love for this great hundred-year 
old marque and would keep the spirit and manufacture of it unsullied 
and properly British...

HA!
This is a miserable course of events and individual greed needs to be 
put aside. The company must think very carefully about what Rover is 
and means in the long term. I realize they need money to develop a new 
car but they do seem to be doing a very good job with the few cooks 
they have not spoiling the broth. Let's get Sir Stirling to rally round 
the flag and tell Shanghai to go to blazes.

Look at what has happened to Bentley. I can live with the new Rolls but 
that Karmen-Ghia thingy (Continental GT) is no Bentley. The new 
Chrysler 300 looks more the part...

I'll remove myself from the soapbox.
Stephen Beer
http://www.autorestyle.com (under construction)


On Sep 10, 2004, at 8:23 PM, Fritz Rauschenberg wrote:

> 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
>>
>>
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