NAC bought MG Rover assets worth USD 100 million in 2005 instead. SAIC and NAC both have a car brand based on the classic British marque, Roewe and MG respectively.
SAIC finally gets hands on MG
A lot has happened for the Nanjing Automobile Group (NAC) over the past week. First Fiat bailed on their joint venture for the production of passenger cars (the commercial vehicle joint venture continues as is) and to top it off, SAIC Motor Corporation, China's largest and state-owned auto producer has merged with NAC.
Meaning that SAIC finally have their hands on the MG brand, after failing to buy the brand rights a few years back. NAC bought MG Rover assets worth USD 100 million in 2005 instead. SAIC and NAC both have a car brand based on the classic British marque, Roewe and MG respectively. SAIC will be using the Longbridge plant as a stepping stone into Europe and other overseas markets.
Chen Hong, president of SAIC said: “We will thoroughly consider the requirements of European customers and EU regulations when we develop our new products and continue to improve MG brand's image in Europe.” Last June NAC showed the new MG TF two-seater and production is still in the planning when the high-quality standards are met.
NAC 320 million SAIC shares in return for its operations, worth some USD 285.7 million. "Faced with global competition, we need to go down the path of mergers and consolidation," said SAIC Motor Chairman Hu Maoyuan. SAIC sold 1.25 million units over the first ten months of 2007, NAC adds another 80,000 units to the tally.