Newsreader
27th Aug 2004, 11:48
China's biggest carmaker yesterday refused to rule out taking a stake in MG Rover.
Shanghai Automotive Industry Corporation (SAIC) did nothing to halt growing speculation that it would try to use a planned collaborative partnership as a means of taking an equity stake in Rover. Xue Hao, a spokesman for the company, said only: “We have signed a strategic alliance agreement with Rover on June 16, which is now subject to regulatory approval.”
Over the past few weeks, unnamed sources, reportedly from the state-owned SAIC, have told the Chinese media that the company is looking to take over Rover as a stepping stone to its ambition of becoming one of the world’s top six carmakers. Rover has said that it is flattered that SAIC might be considering taking a stake and that it would consider such a move if it felt it was in its best interests. But the British company also emphasised that no talks on an equity stake had taken place.
Both sides are hopeful that the Chinese authorities will back the partnership by the end of the year, which will allow them to share development costs and for a medium-sized Rover car to be built in China and Longbridge.
Shanghai Automotive Industry Corporation (SAIC) did nothing to halt growing speculation that it would try to use a planned collaborative partnership as a means of taking an equity stake in Rover. Xue Hao, a spokesman for the company, said only: “We have signed a strategic alliance agreement with Rover on June 16, which is now subject to regulatory approval.”
Over the past few weeks, unnamed sources, reportedly from the state-owned SAIC, have told the Chinese media that the company is looking to take over Rover as a stepping stone to its ambition of becoming one of the world’s top six carmakers. Rover has said that it is flattered that SAIC might be considering taking a stake and that it would consider such a move if it felt it was in its best interests. But the British company also emphasised that no talks on an equity stake had taken place.
Both sides are hopeful that the Chinese authorities will back the partnership by the end of the year, which will allow them to share development costs and for a medium-sized Rover car to be built in China and Longbridge.