With claims to the assets of Rover and its engine producer Powertrain, Nanjing reportedly said it would move MG Rover's engine plant and some car production to China, while expecting to employ some 2,000 workers in the UK. Nanjing may also have plans to expand into the UK by working with the original MG Rover management team.
Leveraging Rover's R&D, the commercial vehicle maker, which has no experience in designing cars, said it will develop its own sedan brands and study ways to further develop markets in China and Britain. SAIC last year bought the designs for the Rover 75 and 25 for US$122m and said it could consider legal action against Nanjing if its rival violates its intellectual property rights.
Reportedly bitter about the lost bid, SAIC is forging ahead to build its own cars in China and could use its Rover IPR as the basis for future offerings. SAIC is set to invest US$444m in a new business that will develop, produce and sell the company's own vehicles and engines.
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