Rovers may be made in Shanghai

By Alex Singleton | 10 April 2005

The cars from MG Rover, the failed British carmaker, may live on a little longer. Last year, the company sold the intellectual property to the Rover 25, Rover 75 and Rover engines to the Chinese Shanghai Automotive Industry Corporation. It is believed that the deal entitled SAIC to veto the use of this intellectual property by anyone else, which gives SAIC massive power over the break up of Rover's assets by the administrators. Because the Rover name is owned by BWM, and is merely licensed to MG Rover, SAIC could license the Rover brand, and start building Rovers in Shanghai.

On the other hand, Rover's collapse (again) does weaken the brand even further. Given that one of the reasons for buying a Rover was (mistaken) patriotism, is anyone in Britain likely to buy a Rover that has been made in China? SAIC might do better dumping the Rover name, and just going with MG, which is a less boring brand. Even then, given the competition in Europe and America in cars, SAIC would find it tricky selling the existing Rover cars into these markets.