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New MGs to roll out at Longbridge New owners reopen MG Rover plant
(40 minutes later)
MG Rover's Longbridge factory in Birmingham is due to reopen on Tuesday under the Chinese ownership of Nanjing Automobile Corporation. MG Rover's new Chinese owners have opened a new car production line at its Longbridge factory in Birmingham.
Three new MG TF sports models are expected to drive off the recommissioned production lines at the opening ceremony. About 6,000 people lost their jobs when MG Rover went bust in 2005. The company was later bought by the Nanjing Automobile Corporation (NAC).
The West Midlands plant has been inactive since MG Rover collapsed in 2005 at a cost of about 6,000 jobs. NAC is now making cars in China, with production lines shipped out from the Longbridge site.
The firm plans to produce the MG TF sportscar at the Longbridge site, initially employing up to 200 people.
NAC has said it will expand the operation if the car is a success.
However, full-scale production is not set to begin until later in 2007 and NAC refused to be drawn on how many cars would be produced in its first year.
Some critics have doubts about how viable full-scale production will be.Some critics have doubts about how viable full-scale production will be.
However, Nanjing Automobile's chief executive, Yu Jian Wei, has said the Longbridge plant "will play a leading role in our European operation".However, Nanjing Automobile's chief executive, Yu Jian Wei, has said the Longbridge plant "will play a leading role in our European operation".
Tuesday's ceremony will be attended by a number of prominent Chinese businessmen, as well as representatives of MG enthusiasts' clubs. Tuesday's ceremony was attended by a number of prominent Chinese businessmen, as well as representatives of MG enthusiasts' clubs.
No British government minister will be present, but Solicitor General Mike O'Brien has handed over a letter of support from Deputy Prime Minister John Prescott. No British government minister was present, but Solicitor General Mike O'Brien has handed over a letter of support from Deputy Prime Minister John Prescott.
Brand shiftBrand shift
In the last years of MG Rover, the Longbridge factory was the last British-owned mass car producer.In the last years of MG Rover, the Longbridge factory was the last British-owned mass car producer.
It was a major part of the local economy, underpinning some 18,000 jobs in the area and helping support company's such as parts suppliers, and the cafes that fed the local workers.It was a major part of the local economy, underpinning some 18,000 jobs in the area and helping support company's such as parts suppliers, and the cafes that fed the local workers.
However, MG Rover ran into trouble as demand for its cars waned and competition from foreign rivals increased.However, MG Rover ran into trouble as demand for its cars waned and competition from foreign rivals increased.
Nanjing is planning to set up a dealer network for the new MGNanjing is planning to set up a dealer network for the new MG
Nanjing Automobile bought MG Rover in 2005, and said it planned to produce the cars in China to meet rising demand as the country's economy expanded. NAC bought MG Rover in 2005, and said it planned to produce the cars in China to meet rising demand as the country's economy expanded.
Much of the machinery in Longbridge was shipped off in 400 containers to a factory in Pukou, 200 miles from Shanghai.Much of the machinery in Longbridge was shipped off in 400 containers to a factory in Pukou, 200 miles from Shanghai.
Once it is reopened, Longbridge will be used as an assembly unit for Nanjing's revamped MG TF, and will also manufacture the cars' bodies, a spokesman for the company told the BBC.Once it is reopened, Longbridge will be used as an assembly unit for Nanjing's revamped MG TF, and will also manufacture the cars' bodies, a spokesman for the company told the BBC.
Most of the MG's components, from the gearbox to engine, will be manufactured in China.Most of the MG's components, from the gearbox to engine, will be manufactured in China.
Question marksQuestion marks
Union representatives have welcomed the reopening of the Longbridge plant, and said that Nanjing had pledged to create 1,200 new jobs.Union representatives have welcomed the reopening of the Longbridge plant, and said that Nanjing had pledged to create 1,200 new jobs.
"There are still many ex-MG Rover workers who are unemployed and hoping to return to Longbridge," said Eric McDonald, the regional industrial organiser of the Unite union."There are still many ex-MG Rover workers who are unemployed and hoping to return to Longbridge," said Eric McDonald, the regional industrial organiser of the Unite union.
Nanjing are a bit player at the edge of the Chinese market, making bold and ambitious moves Prof. Karel Williams, Manchester Business SchoolNanjing are a bit player at the edge of the Chinese market, making bold and ambitious moves Prof. Karel Williams, Manchester Business School
"We are looking forward to a positive relationship with Nanjing.""We are looking forward to a positive relationship with Nanjing."
Despite the optimism surrounding the reopening of Longbridge, a number of questions remain over the long-term viability of the project.Despite the optimism surrounding the reopening of Longbridge, a number of questions remain over the long-term viability of the project.
Some analysts said that the prospects for the MG TF may be limited, and that in turn would hamper efforts to boost Longbridge's current 150-strong workforce.
There is also a huge question mark over how many, if any, dealers have agreed to take on the cars, which first launched in 1995.There is also a huge question mark over how many, if any, dealers have agreed to take on the cars, which first launched in 1995.
"Nanjing are a bit player at the edge of the Chinese market, making bold and ambitious moves," said automotive industry expert, Professor Karel Williams of the Manchester Business School."Nanjing are a bit player at the edge of the Chinese market, making bold and ambitious moves," said automotive industry expert, Professor Karel Williams of the Manchester Business School.