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• February car market slips further
• Honda announces sale of the Honda racing F1 team
• £2.7M move by SMTC strengthens MG’s Longbridge base

• New car registrations fell 21.9% in February to 54,359 units
• Diesel market share fell to 44.1% in February, from 45.0% in February 2008
• Scrappage schemes have provided a boost to registrations in other European markets

"New car registrations continue to decline and although government recognises the strategic importance of the UK motor industry, urgent action is still needed," said Paul Everitt, SMMT chief executive. "Other European countries have been proactive in assisting their automotive industries and it is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit."

Click here to view the full SMMT press release

Honda Motor Co., Ltd. has announced the sale of the Honda Racing F1 Team (company name Honda GP, Ltd.) to Ross Brawn, the former Team Principal of Honda Racing F1 Team.

The entire shares of HRF1, held by Honda GP Holdings Ltd., the UK-based holding company for HRF1 that managed all operations of Honda’s F1 racing, were sold to Ross Brawn. As a result of this sale, the team ownership has transferred to Mr. Brawn, who plans to have the new team compete for this year’s FIA Formula One World Championship.

Hiroshi Oshima, Managing Officer of Honda Motor Co., Ltd. responsible for Corporate Communications and Motor Sports, said: "Since announcing our withdrawal from Formula One racing on December 5 of last year, we have conducted various studies and discussions so the team can continue its activities as a new team. We are very pleased that we could sell the team to Ross Brawn, with whom we have been partaking in the challenges of F1 competition, and are grateful for his decision. We offer our sincerest wishes for the new team which will be led by Ross."

MG Motor UK Limited and the SAIC Motor UK Technical Centre (SMTC UK) are now sharing the Longbridge site as the engineering and R&D company has completed a move from its Leamington offices into new premises, on the site of the MG factory on Lowhill Lane.

The move was an obvious, sensible and inevitable rationalisation of SAIC group companies within the UK, according to SMTC UK’s Director of Business Development, Ian Horton, who said, “We are delighted to have moved to Longbridge to be closer to the product and to the HQ functions of MG UK. We were already working closely with MG and the new geographical proximity of the companies can only be of benefit to the group and the MG brand. We now have a Technical Centre platform from which to grow the future of the Group’s engineering in the UK.”

SMTC UK works on a wide range of engineering and research and development projects for the SAIC Motor group, including new models destined for the Longbridge line. Much of the work is commercially confidential but one of SMTC UK’s first projects for MG is likely to be a remodelling of the existing TF, following the successful launch of the MGTF LE500 earlier in 2008, into a limited edition derivative to mark MG’s 85th anniversary in 2009.

Over 250 people have made the 25 mile move from Leamington to Longbridge following planning that had been progress since last year. The move has benefited both MG UK and SMTC UK, with over £1m spent on an IT upgrade for the whole Longbridge site and larger technical centre offices and workshops for SMTC UK engineers.

Leader of Birmingham City Council, Mike Whitby, said: “Today’s announcement is encouraging news for the city, particularly in the current economic climate, and I am delighted to see jobs being brought into Longbridge.

"Over the last three and half years Birmingham City Council and MG have worked together diligently to build relationships and secure the positive outcomes. We will continue to give our support to make Longbridge once again become renowned as a by-word for excellence, and a real centre of high-class manufacturing."

Ends

For more information, please contact Eleanor de la Haye, Head of Corporate Communications, SMTC, Lowhill Lane, Birmingham, B31 2BQ. Telephone 0121 251 2910