MG Rover-SAIC deal off

Despite eleventh-hour interventions by the UK government, China's Shanghai Automotive Industrial Corporation (SAIC) decided not to proceed with a joint venture with MG Rover over concerns that it could be left with huge liabilities if the cash-strapped British carmaker became insolvent. The deal called for SAIC to take a 75% stake in the joint venture, make MG Rover vehicles in China and provide about US$375m to help MG Rover develop a new medium-sized car. The decision likely spells the end of Britain's last independent automaker.