Following the unravelling of its deal with China Brilliance Holdings, British car maker MG Rover is holding talks with Geely, a privately-owned domestic car maker, about setting up a joint venture to produce cars for the Chinese market, the Financial Times said. Geely is based in Ningbo, Zhejiang province, where the proposed joint venture with China Brilliance would have been based. The new project could use the same land that had been purchased for this aborted deal.
MG Rover's agreement with Brilliance failed after the former head of the Chinese company, Yang Rong, was ousted by the government of Liaoning province, where the company is based, apparently because it was angered by his plans to develop in Ningbo.