Industry News
Nanjing Automobile seeks overseas funding for MG production
27th March 2007
The UK automotive trade website Autowired reported yesterday that the Chinese MG Rover buyer Nanjing Automobile may be prepared to sell a 50% stake in Nanjing MG Motor in order to raise up to £200m in funds to fund increased production, of what have been reported may be three models. Nanjing, not directly Chinese Government-controlled, had earlier been reported to have been seeking funding from the Government, but now appears to be seeking help overseas from the private sector.
"We have been in talks with several potential partners, including funds, in North America and Europe and could sell as much as 50%, Nanjing Automoibile general manager Zhang Xin is reported to have said.
Duke Hale, the chief executive of Nanjing’s U.S. business, which was to assemble MG TF roadsters from kits, left the company this month, reportedly being disappointed that the Chinese company had scaled back its planned production and sales operations in the U.S. – plans elaborated by Mr. Hale rather than by the Chinese company.
(www.autowired, 26 March)
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