British car-maker MG Rover said that the collapse of its partnership with China Brilliance Antomotive (CBA) would have little impact on it, the Financial Times said. Although commentators had linked the collaborative development of new models to MG's survival, the company was confident that it could replace its 45 medium saloon without help from CBA. This was despite the fact that the Chinese partner had been expected to play a significant role in developing a small car to replace the 25 model.
Meanwhile, CBA announced that it had been approached by a subsidiary of the Liaoning provincial government, which wanted to buy a controlling stake in the company. Ownership of the 39.45 per cent stake, currently held by an educational foundation attached to the central bank, had been disputed between Yang Rong, the controversial founder and former chairman of the company, and the Liaoning government. The statement also said that neither CBA nor any of its subsidiaries had entered into a joint venture agreement with MG Rover. The agreement was with Shanghai Brilliance , which shared five directors with BCA, and of which Yang Rong was still chairman.