Fleet News

MG Rover future more secure after China link-up

THE long-term future of MG Rover looks more secure this week after the manufacturer signed a partnership agreement with China's third largest vehicle manufacturer to develop future products and open more markets for each other's cars.

The initiative could see 'Buy British' fleets going for a 'Chinese' as MG Rover and China Brilliance Industrial Holdings (CBIH) co-operate on the development, manufacture and supply of engines. The alliance will also look to reduce costs through larger manufacturing volumes and the establishment of a joint component sourcing strategy committee.

Kevin Howe, MG Rover chief executive, said: 'This is a wide ranging global alliance that spans the full breadth of both companies' activities, and presents many opportunities. I am delighted that we have so much in common.

'Brilliance has achieved quite outstanding results in a very short space of time and demonstrates world class standards in everything it does. It is clearly the leading automotive manufacturer in the world's fastest growing car market.'

Dr Brian X Sun, CBIH chief executive, said both companies are ambitious and able to reach decisions swiftly, and had products which did not compete directly.

He added: 'Benefit will be derived from large economies of scale, which will spread development costs for new products over bigger volumes, and increase purchasing power for components, which will, in turn, make our products more competitive.'

Market territories have been assigned to each partner with vehicles sold exclusively by CBIH in China, most of Asia and Africa, and MG Rover having exclusivity in all other markets, with the chance of collaboration in the USA.

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