From Birmingham Mail:
LONGBRIDGE ran up losses of more than s4.6 million last year despite selling more cars following the long-awaited launch of the MG6.
Results for MG Motor UK show the cash deficit widened from s392,000 in 2010 to s4.648 million in 2011.
And the Chinese firm, which is owned by parent group SAIC Motor Corporation, warned of a challenge to introduce new models to the UK market.
A year ago MG Motor UK announced it had drastically cut its annual losses from over s12.7 million in 2009 to just s392,000 but the trend has now been reversed.
Director Hao Wang said in his annual report for 2011: The company generated a turnover of s11,363,000 in 2011. Revenues from vehicle sales increased by 18 per cent in 2011 over 2010.
At the same time, there are also material reductions in other income and parts sales to group companies in China. The loss after tax amounted to s4,648,000 (2010 s392,000). The significant increase in operational loss was due to the reduction in parts sales and other income from group companies in 2011. Sales in 2011 was 304 units while it was 230 units in 2010. It has been a challenge to introduce new models in the UK market.
Despite a number of good features such as space, good handling and value for money for MG6, it will take a while for our potential customers to recognise the value of this car. We firmly believe that the value of our product will gain recognition by the market in the near future.
Mr Wang said the introduction of the diesel version of the MG6 in late 2012 would significantly enhance sales.
MG Motor UK PR and Events Manager Doug Wallace said work had recently started on a s1.5 million redevelopment of the design centre to double its size, allied to other investments in the engine test centre and the factory ahead of the debut of the diesel MG6.
We are still very much in the early stages of building we are building quite nicely, added Mr Wallace.
Thanks to the tip, McD.