CHINA’S biggest carmaker yesterday refused to rule out taking a stake in MG Rover, Britain’s last independent car manufacturer.
Shanghai Automotive Industry Corporation (SAIC) did nothing to halt growing speculation that it would try to use a planned collaborative partnership as a means of taking an equity stake in Rover.
Xue Hao, a spokesman for the company, said only: “We have signed a strategic alliance agreement with Rover on June 16, which is now subject to regulatory approval.”
Over the past few weeks, unnamed sources, reportedly from the state-owned SAIC, have told the Chinese media that the company is looking to take over Rover as a stepping stone to its ambition of becoming one of the world’s top six carmakers.
Rover has said that it is flattered that SAIC might be considering taking a stake and that it would consider such a move if it felt it was in its best interests. But the British company also emphasised that no talks on an equity stake had taken place.
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Both sides are hopeful that the Chinese authorities will back the partnership by the end of the year, which will allow them to share development costs and for a medium-sized Rover car to be built in China and Longbridge.