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Nanjing Auto seeks backers for MG car project

By Winny Wang (Shanghai Daily)
Updated: 2007-04-06 14:07

Nanjing Automobile Group Corp is seeking investors for its MG car project by selling no more than 50 percent stake in it, theBeijingMorning Post reported today.

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Nanjing Auto is negotiating with potential investors, including major domestic auto giants, the report said.

Yu Jianwei, general manager of the company, said some investors are interested in the MG brand and impressed by the company's speed of production.

"We are negotiating with several companies now," Yu said without revealing any names.

Nanjing Auto acquired the failed Britain's MG Rover Corp with an investment of 50 million pounds (US$87.5 million) in July 2005.

The Chinese car maker rolled out three new MG models on March 27 in its 3.5-billion-yuan plant as it began to revive the historic British car brand in China and around the world.

It unveiled the MG 7275 sedan, its longer-wheelbase version, the MG 7295, and the MG TF sports car. Pricing details were not announced.

The factory is designed to turn out 200,000 cars, 250,000 engines and 100,000 gearboxes a year.

The Chinese plant is part of the company's US$2 billion global revival plan for the MG brand, which also includes a plant in Oklahoma City in the United States and the old MG Longbridge assembly plant near Birmingham, England.

Yu said the company has got approval from theNational Development and Reform Commissionto set up its plant in Longbridge and financial support from the China Development Bank.

Nanjing Auto lost 350 million yuan in 2005 but revived with strong sales of Iveco in 2006.

However, its stake in MG depends on loans from financial institution and government investment, the report said.