Considering the wide swings of fortune for the nearly erstwhile British carmaker, MG Rover, we'd be careful with this latest BBC report. Shanghai Automotive Industry Corp (SAIC) has apparently signed an agreement with Martin Leach, formerly of Ford of Europe, on a plan to buy MG Rover's assets. The plan would call for cars like the Rover 75 to be built at the company's Longbridge, UK plant — saving the jobs of up to 1,600 engineers — with engines built at a plant in China that would be fitted with machines plundered from Longbridge.
By keeping MG Rover a going concern, creditors will get paid, not shafted as they would by a firesale of assets. Still, up to now, the Chinese company has rejected several proposals to bail out MG Rover that would have saved the company's 6,000 jobs, making Leach's involvement but one wildcard among many. It's obvious now that SAIC was never interested in being a silent partner to preserve MG Rover's status-quo. We'll see how this unfolds.
SAIC lines up MG Rover rescue bid [internal]