Is there a future for MG ?

On this page we'll bring you all the latest rumours and news concerning the future of MG ....if there is one .

WIVES and PARTNERS TO DECLARE ALL - 2nd February 06

The wives of the former 'Phoenix Four' directors of MG Rover are having their finances scrutinised in the inquiry by the Department of Trade Industry into the collapse of the car firm.

The Times reports that the inquiry - currently costing tax-payers around £500,000 a month - has found evidence of offshore bank accounts in the women's names. This development comes as MG Rover's auditors, Deloitte & Touche, have delayed the publication of the company's last set of accounts, for the second time.

The investigation is expected to last another year.

Martin Woods

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MPs PROBING MGR COLLAPSE    18th January 06

 A committee of MPs have launched an inquiry into the role the government played in the collapse of MGR.

The Trade and Industry select committee will try do find out whether the government did too much or too little in their attempts to save the stricken company in particular the roles played by Stephen Byers and Patricia Hewitt. 

Byers will be investigated regarding his involvement in the disposal of MGR by BMW in 2000 and Hewitt for her role in the 2005 collapse. 

This is seperate from an enquiry being undertaken by the Dept of Trade and Industry itself which is expected to take two years. The Select committee will hear evidence in the spring and hopes to report back by the summer of 2006. It is expected that some or maybe all of the Phoenix four, John Towers, Nick Stephenson, Peter Beale and John Edwards, will be called to give evidence.

Meanwhile there are still plenty of rumours circulating regarding the progress of talks with GB Sportscars and the re commissioning of Longbridge to produce vehicles again. At the moment this looks gloomy.

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AUTOCAR SPECULATION  - 6th December 05

The latest edition of Autocar magazine carries a speculative article on the Austin Healey 5000 - a car based ion the current SV platform and produced by GB Sports cars in the UK. They also speculate in their Photoshop way how a vastly face lifted MG TF may look should production re commence. It is also reported that Audi engines are being considered to replace the K series. GBSC have made no comment and it also seems that ownership of brand names has once more come into question. Is Heaely actually Nanjings to sell - the patent office still has it listed with the Healey family. Former failed MGR bidder Krish Bhaskar may also be laying some claim to the name and has expressed further interesting in developing the Longbridge site possibly in partnership with Nanjing. With all these rumours it's quite clear that it won't be over for some time yet.

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GB SPORTSCARS SIGN UNDERSTANDING - 26th Nov 

GB Sportscars have taken another step closer to sealing the deal with Nanjing to produce sports cars at Longbridge. Last week the company , under ex Powertrain boss Fraser Welford-Winton , signed a "memorandum of understanding" with Narjing relating to sports car production in the UK. Under the terms of this venture the rights to the Austin-Healey marque would be acquired by GBS. It is understood from this that even if the Nanjing deal to produce MG sports cars falls through GBS would still have the right to produce cars under the Austin - Healey brand. A final deal is expected within six weeks.

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NANJING WRITE TO DEALERS - 24th Nov

Nanjing have written to previous MGR dealers however it does not mention which, if any, UK partnership is involved. This is interesting in view of the rumour that talks with GB Sportscars concerning running the UK production of MG may not be proceeding that satisfactorily . 

On a positive note it does seem to confirm that Nanjing intend to keep some production at Longbridge to produce the MGTF , ZT and ZTT. However engine, transmission and some medium and low end production will revert to China and shipped back to the UK for assembly. Other good news is that Research and development will remain in the UK with development of Euro 4 engines and a new generation of vehicles. The letter finishes by stating that production should resume again at Longbridge at the beginning of 2007.

It does make clear here that MGs will be produced outside of the UK for the first time. A move that is bound to disappoint many MG Enthusiasts.

Full text of Nanjing Letter is HERE

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NANJING AND SAIC SETTLE UP - Nov 2005

There is fresh evidence that Nanjing and SAIC have settled the difference over the intellectual rights to the Rover 75 and 25 obtained by SAIC from MGR for £67 million. It seems the deal concerns the use of the Rover name by SAIC (licensed by BMW) in exchange for which SAIC would license the rights to the 25 and 75 enabling Najning to produce the ZT/ZTT in the UK and the MG ZR in China..

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NANJING and GB SPORTSCARS "NOT EXCLUSIVE"

It has been reported that Nanjing Vice President Wang Qui Jing has implied that the deal with GB Sportscars regarding running UK production of MG is "not exclusive". Mr Wang is quoted as saying "there are some other potential partners besides the GB Sports Car Company. We are bound by confidentiality agreements regarding those partners.
"Those talks are in process and they are in good process. The GB Sports Car Company is one of those potential partners but there are some others. We would prefer a partner, of course."

One of these other partners is believed to be the Chinese Car Giant First Automobile Works who will jointly develop new vehicles with Nanjing. This would undoubtedly impact on the UK R & D department and could provide the funding needed to develop new cars.

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NANJING RECRUITING

28th October - BBC News  -

 Around 200 former MG Rover engineers have been invited to work for the car firm's new owner, Nanjing Automobile, the BBC has learned. Letters have been sent out to workers who lost their jobs when the firm collapsed in April. The letter asks the workers: "Would you like the opportunity to work in China for up to 10 months?"  It also suggests the applicants would be dismantling equipment from Longbridge then rebuilding it in China. The letter includes  a recruitment application form "to work for the Nanjing Project on the dismantling, reassembling in China consolidation in Longbridge of MG assets purchased by Nanjing" (sic). 

 It is still believed that MG production could return to the UK  as Nanjing have not yet reneged on their previous statements to create 1500 - 2000 jobs at Longbridge. GB Sportscars is still preparing it's business plan in partnership with Nanjing. If sportscar production does resume then it is likely to be in the second half of 2006 however there is a problem looming on the 1st January 2006 when new European Emission requirements take effect. None of the existing MG or Rover ranges will comply with the new rules . The entire engine range will need to be made compliant with these regulations - currently the Powertrain engine plant is being dismantled and shipped to china along with much of the Rover production line at Longbridge. This has always been the intention of Nanjing and is of no surprise.

 On a positive note Stadco who manufacture the TF body shell have kept their assembly facility available in Coventry with a view to resuming production. However other parts may have to be reshipped from China for re assembly in the UK.

 We could be looking at an MG TF built partially in China and assembled in the UK for the end of 2006 under the GB Sportscars banner. Production of any Rover or MG saloons is unlikely to be seen on these shores.