Moulton said: 'BMW's problem is that it was not big enough. To begin a new steel car would take hundreds of millions of pounds in investment and we have no intention of competing in that market. 'The MG Car Company will be synonymous with British technology and manufacturing know-how at its best, producing cars which are sought after in the medium volume segment of the market. It will be a responsible custodian of the MG brand and entire current Rover range, investing in and taking its products to new levels of desirability.'
To keep costs to a minimum, new equipment, including gearboxes and engines, will be bought in from outside suppliers. Moulton revealed that Mini production will stop in the autumn and sales of new vehicles will finish by December. Following a check on inventory, Moulton revealed Rover had enough stock to supply the market for five months, which would have to be moved, with price cuts not being ruled out. The firm has given itself six weeks to develop a strategy for the future, including the appointment of a team to run MG Car Company - names have not yet been released.