MG Rover, the last British-owned large-volume car marker, has reached an agreement to produce vehicles in China, it emerged today.
According to reports, the company has reached an agreement with the Shanghai Automotive Industry Corporation. The deal, which has yet to be approved by the Chinese government, would give the Chinese firm access to Western production methods and MG Rover a toe hold on the expanding mainland China market.
It is not the first time MG Rover has sought to build partnerships oversees. It currently produces the CityRover in India and has sought to build a Chinese presence before.
Plans to produce a car in China fell through in 2001 when a deal with the Chinese company China Brilliance fell through.
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More recently Rover, which was bailed out by the British Government when BMW, the German automobile company, sold the business to a consortium of businessmen for £10 four years ago, has explored a joint venture with Proton, the Malaysian outfit.