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Workers add the final touch to a newly produced MG car plant Nanjing Automobile Group Corp. in Nanjing, China Nanjing Automobile, which bought the brand MG, used as a platform for global expansion Qilai Shen Bloomberg News .
SHANGHAI - Nanjing Automobile Group Corp. unveiled its made in China MG sports cars and sedans recently, the first step in a plan to use the iconic British brand as a platform for global expansion.
the oldest car manufacturer in China introduced the roadster MG 1 8 liters TF and MG 7295 and MG 7275 sedan to its 450 million plant near the eastern city of Nanjing The brand, renamed Ming Jue, or Modern Gentleman, will on sale in China in the second half of the year.
Nanjing Auto, SAIC Motor Corp. and other automakers have added their own brands and begun targeting overseas sales, increasing competition greenhouse profit margins in the second largest auto market new owner of MG world plans to invest 2 billion in the brand, including opening plants in the UK and the US.
MG, as worldwide established brand, will help Nanjing Auto attract customers' attention, said Huang Zherui, an analyst at CSM Asia, which advises carmakers in China.
The engines are classics accessible to mid-market president Yu Jianwei Nanjing Auto said he declined to disclose production plans by the vehicle manufacturer and retail prices sedan 7 Series, with August 1 liters and 2 5 liters By comparison, 2 4 liters Shanghai General Motors Co Buick LaCrosse sell approximately 27,500.
Companies in China, a country with more than $ 1 trillion in foreign exchange reserves, bought rivals abroad for brands and technologies that will help them develop Lenovo Group Ltd. overseas paid 1 25 billion for International Business machines Corp PC unit in 2005. TCL Corp. bought German TV maker Schneider Electronics AG in 2002.
Nanjing Auto bought the MG brand and other assets to 97 million in 2005, after the collapse of the UK -Based MG Rover Group Ltd. SAIC Motor, General Motors Corp. and Volkswagen AG partner, bought the design rights for both MG Rover models and K -Series engines for 130 million 2-liter Roewe 5 750, developed from the Rover 75, sells about 30,300.
Nanjing Auto is building MG TF roadster convertibles at a former MG factory in Longbridge, England, and it also plans to open a research center there.
MG TF Coupes will enter production in Ardmore, Okla in May or June 2008, the automaker said the roadster, a coupe and a sedan goes on sale in the US next year, Duke T Hale, MG Motors North America Inc.'s CEO, said.
Japanese automakers have 30 years to start sales abroad, while Korean automakers 20 years, Wang Haoliang, chairman of Nanjing Auto said that we are much faster.
The automaker aims to sell as much as 60 percent of its MG cars overseas, Yu said without providing a timetable is in talks with strategic foreign investors, he added, without elaborating.
The plant in Nanjing MG, built in less than a year, has an annual capacity of 200,000 cars, 250,000 engines and 100,000 gearboxes He internal roads called Birmingham Avenue and Avenue England, reflecting the UK roots MG.
The company seeks 400 million in grants and loans to support its expansion plans, Yu said he has earned exporting loans owned by the state and import Bank of China and commercial lenders to its plant in the UK, he said the top planning agency China approved the factory, he said.
Nanjing Auto was founded in 1947, according to its website's main products are trucks and buses, as well as Fiat SpA Palio and Siena cars.
The first car MG was built at Morris Garages in Oxford, England, in the 1920s, according to the automaker's site has built a series of sports cars with two seats including Series T and the MGB, an icon of 1960s and 1970s.
The company was absorbed by British Motor Corp. in 1952, the beginning of a series of mergers in the automotive industry U K The brand ended as part of MG Rover, which collapsed in 2005 with debts 2 7 billion.
Economic growth in China has averaged approximately 10 percent over the past four years, making cars affordable to more people vehicle sales rose 25 percent last year to 7 22 million, while China surpassed Japan as the largest car market in the world behind the United States.
Yet the growing competition depressed profit margins for Chinese automakers to 3 1 per cent last year from 9 percent in 2003, according to Bloomberg calculations based on numbers on the China Association Web site automakers sales own brand models means that a carmaker no longer needs to share its profits with a partner abroad.
SAIC Motor, China's largest automaker, has sold about 4,000 Roewe 750s in China in about five months, President Chen Hong said in March it aims to sell more than 200,000 cars and 400,000 buses and trucks a year under its own brand by 2010.
The company spent at least 600 million since 2002 buying overseas rivals and plants to develop brands independently of its partners, GM and Volkswagen.
We see no obvious strains between the joint venture partners and SAIC Motor, but as their products become more and more successful it will likely be a problem, said Gerwin Ho, an analyst based in Hong Kong at Bear Stearns Asia Ltd. .
Geely Automobile Holdings Ltd. China's largest private carmaker, aims sales of 240,000 sedans Geely and Maple this year, including 20,000 foreign He also agreed to buy a 23 percent manganese Bronze Holdings PLC , the largest manufacturer of London black cabs, taxi and train-making company in Shanghai.
Chery Automobile Co, which has manufacturing partners in Iran, Malaysia, Bangladesh and Argentina, plans to increase its sales by 29 percent to 393,000 vehicles this year Chrysler has chosen to make cars for sale in the US .
Up to 26 percent of the cars made in China last year were designed locally or modified from imported models, according to the Automobile Manufacturers Association.
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