Autoblog

Nanjing is still hanging IV bags on the battered carcass of MG, and there's a new hatchback model coming for 2010 that the automaker hopes will breathe new life into the the brand. Based on SAIC's Roewe 550, the new hatchback is about the size of a Euro Focus, and will reportedly be built at the historical MG home of Longbridge, in the UK. The car looks a little flashier than the Roewe version, and engineers from Ricardo are lending development expertise to make sure the suspension settings are all that they should be. Inside, there's a BMW-esque instrument panel, and underhood will be a 1.8-liter four cylinder, either naturally aspirated or turbocharged. With the flurry of new activity at MG -- there's the MG TF and ZS, as well as more models coming soon -- color may be returning to the cheeks of a brand once thought as good as dead.

[Source: Auto Express]

MG's former Longbridge, UK headquarters has been pretty quiet since production ceased in 2005. Newly-merged owners SAIC and Nanjing want the clatter of carbuilding to once again echo through the plant and plan to base their European and overseas operations there. The plant itself has the capability to build up to three different models; the challenge is deciding which of the former rival's products to build there. MG TF roadsters will likely lead the charge, with cars due at retail locations by March 1st. MG Rover holdovers could return to their roots if SAIC/Nanjing decide to build the MG 3 and MG 7, while the newly deisgned Roewe W2, pictured above, looks like a solid possibility, as well. In addition to manufacturing, R&D and sales efforts will also be strengthened. From the sound of things, it won't be long before Longbridge is once again turning out cars (some of the same cars, even) at a healthy clip.

[Source: Auto News - sub req]

Fiat and Nanjing may have divorced their marriage on passenger cars, but that shouldn't affect their offspring. Following Fiat's withdrawal from its joint venture with the Chinese automaker, production of three current Fiat models at the Nanjing plant is expected to continue.

With demand for the Sino-Italian cars slowly dwindling, Nanjing Fiat Auto was expected to continue production in the short term only to satisfy orders placed, and the manufacturing of spare parts to support the service of the cars already sold will also continue for years to come. However, recent reports indicate that as part of its divorce with Fiat, Nanjing acquired the rights to continue building the Palio Weekend wagon, Siena sedan and Perla (a larger sedan having been developed in China and based on the Siena platform) under a different badge. Component suppliers in China report that they have received no cancellation on shipments to the assembly plant, so they're expecting to continue on with business as usual.

[Source: Automotive News Europe (sub. req'd) via Italiaspeed]

The twisted saga of MG's resurrection from the ashes at the hands of Chinese automakers has come full circle. Last year both SAIC Motor Corp. and Nanjing Automobile Corp. fought tooth and nail for the right to build MGs in England, and Nanjing, the smaller of the two automakers by far, won. Since then the Chinese automaker has been trying to begin production of a new MG roadster at the company's plant in Longbridge, England. SAIC, meanwhile, accepted the defeat and instead purchased some MG production equipment and began building Rover sedans in China under the Roewe name (Ford had cleverly exercised its option to purchase the Rover name from BMW, which meant that SAIC had to name its Rover sedans something else).

SAIC has gotten the last laugh, however, with its recent purchase of Nanjing. Nanjing bought Rover for an estimated $100 million back in 2005, while SAIC reportedly has agreed to pay around $1.9 billion for Nanjing.This means that everything SAIC lost out on in the bidding war over MG it has gained by acquiring Nanjing. Most importantly, this includes the Longbridge production facility. SAIC already has an R&D center in Britain, which it will consolidate with the Longbridge facility and use to begin production of vehicles in Europe. The automaker claims production of the MG roadster, as well as other MG models, will begin soon, though SAIC can also use those facilities for development and production of new vehicles for the European market sold under its own name. Why is MG so darn important to these Chinese automakers? As an established European brand with some street cred, MG is a small company that offers the Chinese an easy way into the lucrative European market. Perhaps instead of Rovers, we'll soon see Roewe sedans on the streets of London.

[Source: Reuters]

Hot on the heels of Nanjing Auto's merger with SAIC, Fiat has announced it has pulled out of the automotive joint venture it had embarked upon with Nanjing.

The Sino-Italian operation had been a money-losing enterprise for years. Fiat says that Nanjing failed to live up to its commitments to the joint venture after the Chinese auto group took over MG Rover, and that the divorce will enable the Italian automaker to re-strategize its business in China. Fiat is expected to partner instead with Chery Automobiles, which just announced another joint venture with Israel Corp. Fiat and Chery are in the process of setting up another joint venture to produce 175,000 cars annually starting in 2009, and leading to the introduction of Fiat Group division Alfa Romeo to the Chinese market.

The separation affects only the cooperation between Fiat and Nanjing on the production of passenger cars, and doesn't have any bearing on Fiat's truck-building division, Iveco, which cooperates with Nanjing to build vans and with Nanjing's new parent company SAIC on trucks, the two relationships will continue unhindered.

[Source: Automotive News - Sub. Req.]

Industry analysts widely agree that one of the principal factors preventing Chinese automakers from succeeding outside of China is the local industry's fragmentation, with over 100 automakers vying for their slice of the proverbial pie. However, a merger announced Wednesday between two major Chinese automakers, Shanghai Automotive Industrial Corp (SAIC) and Nanjing Automotive Group, stands a stronger chance of succeeding in the international car market as a larger group.

The merger, which has been long anticipated, involves SAIC paying $285.7 million for Nanjing. In return, Nanjing's parent company acquires 4.9 percent of SAIC Motor Corp.

The products of SAIC's joint ventures with GM and Volkswagen Group account for 14% of the domestic market in China, selling 1.25 million vehicles in the first ten months of 2007. Nanjing, meanwhile, sold less than 80,000 over the same period, making the acquisition a merger in the same sense as Mercedes had "merged" with Chrysler. Nanjing, however, owns MG Rover, whose plants in England SAIC hopes to use as a foothold into the European market.

[Source: Automotive News – subscription required]

Instead of beating each other's brains out and assuring that nobody wins, SAIC and Nanjing have decided to stand close to each other on the playground. While they may still avoid eye contact and kick pebbles instead of developing a friendship, they will be carrying out what they're terming a "comprehensive collaboration." Design, production and sales efforts will be pooled in an effort to make China's automakers competitive with outsiders like General Motors and Volkswagen, who currently dominate China's vehicle market. The weekend announcement of the effort was mum on a merger, but did mention an asset swap as the two state-controlled businesses go forward splitting resources. At the very least, it seems like the cooperative effort will quell the bickering over the carved up carcass of Rover Cars.

[Source: Detroit News]

It appears that despite the incredulous whining and snarky commentary about Britain's MG being purchased by Nanjing and renamed Modern Gentleman, the Jiangsu, China based automaker has the best interests of MG in mind. They've been exceptionally careful stewards so far, quickly ramping up production in a huge, modern facility in China so that MGs could once again roll off the assembly line for the 60th anniversary of the brand. The familial MG homestead in Longbridge, UK has been reinvigorated as the UK and European headquarters for NAC MG. Cars will once again be manufactured in Longbridge, and the location will also play a role in R&D, engineering, workforce recruiting and of course, sales. Not only has the move garnered goodwill for the Chinese parent company, it shows that they're committed to MG and have a long term plan in mind.

Press release after the jump.

[Source: NAC]

According to an article in the Financial Times, Nanjing Automotive Corporation, the Chinese owners of MG, are currently developing a new sports car that should be released sometime in 2009.

A Nanjing exec is quoted as saying that a new, "very good sports car that would fit in with the brand" is coming, although no further details were released.

This new sports car will likely be produced at MG's Longbridge plant, however, more expensive parts, including engines and transmissions would be shipped out from China.

With the first TFs expected to be produced in the next few months, it seems that MG's new masters are finally on their way to making good on their plans, and with two new models, in addition to this new coupe on the horizon, the automaker finally has a shot at rising from the ashes.

[Source: Financial Times via Motor Authority]

Many speculated that this day would never come, but after six long and expensive months of equipping assembly lines and performing tests, Nanjing Automobile has produced its first MG.

Against a backdrop displaying pictures of Buckingham Palace and the Tower Bridge, the "new" ("new" as in the same design as three years ago) MG7 sedan and MG-TF sports car were unveiled at the plant. These two models will form the basis of some 200,000 vehicles expected to be produced at the manufacturing center each year, with the majority being sold inside the country.

Nanjing Automobile has every intention of trying to export these "new" vehicles abroad, but with prices ranging between $23,300 and $51,700, we doubt we'll see any gleaming TFs on U.S. shores anytime soon.

Thanks for the tip, Ed!

[Source: BBC News]