A potential merger between two state-owned automakers could create a new automotive powerhouse in China. Long rumored, the partnership between Shanghai Auto, China's largest car company, and the struggling Nanjing Auto was formally announced over the weekend. The companies, both of which are controlled by their respective local governments, said they are exploring ways of forming a "complete union" through restructuring and cooperation.
The impact on the recently revived MG brand and product range, now controlled by Nanjing Auto, won't be felt immediately. But an alliance with powerful Shanghai Auto, which has joint ventures with Volkswagen and General Motors, would certainly enhance MG's long-range prospects. During the 2005 breakup of Britain's MG Rover group, Shanghai Auto secured intellectual property rights to the Rover 75 sedan and other vehicles, while Nanjing Auto acquired the tooling from the shuttered Longbridge factory.
Since then, Nanjing has relaunched production of the MG TF roadster, while both companies have introduced their own re-engineered versions of the Rover 75. Neither company has the rights to the Rover name, so the Shanghai Auto model is badged as the Roewe 750, and the Nanjing Auto version is called the MG 7.
In addition, Nanjing recently signed an agreement with the family of Donald Healey that could see the resurrection of the Austin-Healey nameplate on future sports cars.
Shanghai Auto and Nanjing Auto said they "share a common vision to jointly build an automotive group that will become the largest, world-class automotive group in China, with the resources to develop a highly effective global development strategy."
Tuesday, July 31, 2007
Automotive News : Shanghai Auto, Nanjing Auto To Merge
Posted by kayonna at 3:13 AM
Labels: Automotive News
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