BUSINESS: China's Shanghai Automotive Steps In to Save MG Rover, page 1

China�s Shanghai Automotive Industry are planning a joint 70 / 30 % venture with Britain�s last carmaker MG Rover. The Deal will allow MG Rover access to the Chinese car market. MG Rover racked up 123.8 million pound operating losses last year.

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LONDON (AFP) Chinese company Shanghai Automotive Industry Corp. may be ready to step in to save ailing British car manufacturer MG Rover, a media report said.

According to British daily The Independent, Shanghai Automotive is ready to inject one billion pounds (1.8 billion dollars, 1.4 billion euros) into Britain's sole remaining carmaker as part of a new joint venture.

The deal, which would involve a 70 percent holding in the new company for Shanghai Automotive and 30 percent for MG Rover, was greeted by MG Rover head of international media Stewart McKee as a "tremendous opportunity" for both sides.

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Shanghai Automotive Industry Corporation (SAIC) hopes to capture as much of the Chinese automobile market as it can. It has about 50 plants in the Shanghai area, SAIC makes motorcycles, trucks, tractors, buses, cars and car parts. They also have ventures with General Motors and Volkswagen.

[edit on 20/11/2004 by Sauron]

[edit on 20-11-2004 by Nerdling]