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New owners reopen MG Rover plant New owners reopen MG Rover plant
(30 minutes later)
MG Rover's new Chinese owners have opened a new car production line at its Longbridge factory in Birmingham.MG Rover's new Chinese owners have opened a new car production line at its Longbridge factory in Birmingham.
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). Three new MG TF sportscars were paraded about the site at a ceremony marking the official reopening by new owner Nanjing Automobile Corporation (NAC).
At the event, NAC added it had already invested £250m in MG, both in the UK and China, and pledged to invest more.
"We feel confident and resolute in restoring MG's former fame," said NAC chief executive Yu Jian Wei.
"MG has a glorious past and we are the inheritors of the brand. We are all striving to push forward our internationalisation strategy and accelerate innovation."
About 6,000 people lost their jobs when MG Rover went bust in 2005.
Future plans
NAC is now making cars in China, with production lines shipped out from the Longbridge site.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. The firm plans to produce the MG TF sportscar at the Longbridge site, initially employing up to 200 people, and will expand the operation if the car is a success.
NAC has said it will expand the operation if the car is a success. But the vehicles unveiled at the opening were merely assembled at Longbridge - they did not pass through the full production services.
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. 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, NAC's chief vowed that the Longbridge plant would have an "irreplaceable role in the MG project".
Tuesday's ceremony was 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 was 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 companies 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
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.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.
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 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. Mike Whitby, leader of Birmingham City Council, said the reopening of Longbridge was a "day of celebration and optimism".
Nanjing 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."
Despite the optimism surrounding the reopening of Longbridge, a number of questions remain over the long-term viability of the project.
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.