Hope for MG Rover

Nanjing Automobile Corporation (

) has entered into a contract to acquire the assets of the

company from the administrator,

.

According to a statement, Nanjing intends to revitalise the MG brand and create a range of vehicles from manufacturing centres in China and the UK. Arup, the global design and business consultant, is lead advisor in the acquisition process in association with China Ventures and Herbert Smith.

Nanjing is one of the oldest established automobile manufacturers in China, and in recent years the company has steadily built up relationships with overseas automotive manufacturers, including Fiat and MG Rover. The acquisition of MG Rover gives Nanjing the opportunity to establish a presence in Europe, creating high value MG cars in the UK, complemented by volume production of a range of vehicles in China.

On completion, Nanjing with Arup and China Ventures will begin work to build a viable automotive business in China and the UK. This will begin with establishing a low cost global supply chain, and 'consolidating' the Longbridge site so that it can support a viable UK business. The company will also create a UK based design and technology centre.