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Nanjing Automobile Corp, the Chinese owner of the failed British MG Rover torque, is set to revive the famous brand in China as the revival program has been accepted by China's top government planning body.

 

Nanjing Auto submitted the revival plan, known as project 566, to the National Development and Reform Commission (NDRC) on Friday. The commission's approval will help Nanjing Auto restart production of cars under the MG and Austin brands which it bought for 50 million pounds (US$87.5 million) from the bankrupted MG Rover Group last July.

 

The assets acquired from MG Rover also included complete assembly lines, research and development equipment as well as several models under the MG and Austin brands, and could help Nanjing Auto to produce 200,000 cars, 250,000 engines and 100,000 gearboxes annually.

 

A major manufacturing plant and R&D center will be located in Nanjing, capital of Jiangsu Province, where it is expected to roll off the first model, MG 75, in the first half of 2007, said Wang Haoliang, chairman of Nanjing Auto.

 

The MG 75 will be the key model to help Nanjing Auto expand its product lineup to the high-end car segment in addition to existing trucks and compact cars, according to a business insider.

 

Nanjing Auto will collide head-on with Shanghai Automobile Industry Corp in reviving one of the most famous British torques in China as SAIC paid around 67 million pounds (US$128 million) to acquire the designs and intellectual property rights of the Rover 75, Rover 25 and related engines.

 

( Shanghai Daily March 13, 2006)