Comments on: Nanjing Autos and SAIC tie up to be announced soon

By: Ashley

Ashley — Tue, 18 Dec 2007 13:37:45 +0000

It could be a smattering of many points. Mass production of cars is happening in the UK and they are selling abroad quite well, for example, Landrover, and maybe Jaguar but to a lesser scale.

The problem with MG at its current stage is that all of its motors are rather old, and mass production in the UK is not going to make them any money. I think if SAIC took over Nanjing and therefore Longbridge, you could see the Roewe 550 being made in Longbridge, but then that is a pretty big gamble on SAICs part, should they begin mass producing an unknown brand in an expensive country, or should they mass produce elsewhere in the EU at much lower costs?

Still, MG can boast to Chinese consumers that they are an international brand, with international facilities.

By: Colin G

Colin G — Tue, 18 Dec 2007 11:47:37 +0000

I hear what you’re saynig but look at Honda, Nissan, toyota and Vauxhall. All building in Britain and making money. So perhaps it’s not so much to do with the GBP being so strong but a lack of actually wanting to return to making in Britain. My question is: Did the chinese ever really have any intention of building in the UK or was it a smoke screen to get their hands on the tools and the technology??

By: Ashley

Ashley — Mon, 17 Dec 2007 12:26:08 +0000

Nora,

Thanks for that, my copy and paste skills are not what they used to be.

By: Ashley

Ashley — Mon, 17 Dec 2007 12:06:55 +0000

What about the SAIC research center?

I dont believe mass production will ever begin in the UK with GBP being so high, I guess its just not cost worthy, unless they were planning to target solely on the UK market, then their profit margins would still be very very small.

By: Colin G

Colin G — Mon, 17 Dec 2007 11:51:43 +0000

Perhaps I am being pessimistic….but I don’t think any tie up will improve things in the UK. I don’t believe the chinese will re-invest in the UK. They haven’t up until now and I can’t see them changing. I would love to be proved wrong though.

By: Nora

Nora — Mon, 17 Dec 2007 11:36:21 +0000

These lines are missing at the beginning of the Birmingham Post article above:

A full takeover of Nanjing Automobile by its domestic rival Shanghai Automotive will be sealed on Boxing Day, The Birmingham Post has learned.

The two companies - which have competed over the MG Rover legacy - have agreed in principle to a merger to create a Chinese automotive giant.

Under the terms of the deal Nanjing Automobile Corporation would own no more than 15 per cent of Shanghai Automotive Industry Corporation.

But sources said the deal would not affect NAC’s plans to restore vehicle production to Longbridge and relaunch its version of the MG TF early next year.

The deal would create the biggest Chinese automotive maker, with a combined production of more than 1.6 million vehicles.

It would be a step towards creating a national Chinese car champion that would eventually compete head-on with global giants.

The Beijing government is seeking to strengthen the industry by encouraging tieups and mergers.