SAIC to resume making MG sports cars in UK

17/06/2008 15:17

By Fang Yan

SHANGHAI (Reuters) - SAIC Motor <600104.SS>, China’s top automaker, plans to resume making MG sports cars in Britain in August, its president said on Tuesday.

SAIC will start selling British-made MG TF sports cars in the United Kingdom, via more than 40 dealers, at the end of August or in early September, Chen Hong said at a shareholders’ meeting.

"We will do it step by step," Chen said. "We will start with Britain and will consider selling to other markets eventually."

SAIC, which also runs car ventures with General Motors and Volkswagen , is among a growing army of Chinese automakers aiming to make a name globally.

It become the latest owner of MG Rover’s 10,000-unit Longbridge plant in Birmingham, central England after a merger with its much smaller peer Nanjing Automobile Group late last year.

The facility, acquired by Nanjing Auto in 2005, will serve as a platform for tapping the European market, company executives have said.

In an effort to revive the failed British car brand, SAIC will roll out more MG variants and new models in the coming years to attract buyers.

"Capacity is not an issue for us at the UK plant. What we need to do is to continue develop new models while keeping the original flavour of the MG brand," he said.

ROEWE

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In March 2007, SAIC rolled out its first self-developed car, the Roewe 750, based on acquired technology, with first-year sales coming to roughly 16,000.

Chen said his firm aims to more than triple sales of its own-brand cars to 50,000 this year as it rolls out more new models, including a Roewe 550, catering to various market segments.

The firm has been investing aggressively in its own-brand cars. Company executives said previously that they will add more assembly lines to build 30 new models by 2010.

SAIC Motor Chairman Hu Maoyuan did not rule out exporting Roewe cars to Europe or elsewhere eventually.

"We are currently focused on reviving and improving the image of MG globally. But we will not rule out selling Roewe overseas in the future if there is a demand," Hu told Reuters.

(Editing by Quentin Bryar)

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