It aims to lift sales to 300,000 vehicles a year in China by 2010.

Despite the hitches, production of the vehicles was resumed at the end of October.

Nanjing Auto revives MG brand

Nanjing Automobile Corp, which beat SAIC to be the Chinese owner of failed MG Rover Group Ltd, announced aggressive plans to revive the oldest British car brand for a full range of sports cars and sedans.

Nanjing spent 50 million pounds (US$87.5 million) to take over the bankrupted MG Rover Ltd last July. It plans to reintroduce the cars in China and Europe as the first MG-branded models rolls off the assembly line in the third quarter of 2008.

The total US$2 billion investment in reviving the historic car brand will allow the state-owned Nanjing Auto to locate a new manufacturing facility in Oklahoma in the US, which also functioned as the company's global headquarters for sales, marketing and distribution outside of Asia.

The Oklahoma City plant will produce a newly designed TF Coupe with 2,200 hourly and 200 employees. Nanjing Auto will also resume production at MG Rover's former Longbridge assembly plant near Birmingham, England, to make MG TF roadsters.

The company received approval from the Chinese government to establish a new factory and research and development center in mainland China, turning out 200,000 cars with the MG brand, 250,000 specialised engines and 100,000 gearboxes annually.

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