MG Rover to work with Chinese firm on new car range

MG Rover is establishing a joint venture with China Brilliance Industrial Holdings.

They will design and develop new ranges of medium and small cars, to be built in both the UK and China.

The Rover TCV - Tourer Concept Vehicle - unveiled at the Geneva Motor Show provided a hint towards the styling of the new medium-sized cars to replace Rover's current 45 models.

An MG Rover spokesman says: "MG Rover will provide considerable technical support and assistance in order to establish the necessary manufacturing processes and systems in China. This will extend to the establishment of a joint research and development centre in China."

Kevin Howe, chief executive of MG Rover, says: "This is a wide-ranging global alliance that spans the full breadth of both companies' activities, and presents many opportunities."

He adds: "Brilliance has achieved quite outstanding results in a very short space of time and demonstrates world-class standards in everything it does. It is clearly the leading automotive manufacturer in the world's fastest-growing car market."

Tony Woodley, the TGWU's chief negotiator for the car industry, says: "This joint venture to develop and build brand new cars should help to preserve tens of thousands of jobs in the car and components industries in Britain.

"Whilst no one should underestimate the challenges facing the car industry, this tremendous news is the last piece in the jigsaw for MG Rover, who have confounded the critics by surviving and thriving."

News of the deal between MG Rover and Brilliance comes only two days after BMW announced it was in joint venture talks with the Chinese group about producing BMW cars there.

BMW famously sold Rover - the firm it dubbed the "English Patient" - to John Towers and his Phoenix consortium for just £10 in May, 2000.