British car maker MG Rover has formed a joint venture to build cars in China, reported Associated Press. The 50-50 joint venture with China Brilliance Industrial Holdings will finance, develop, manufacture and export a new medium-sized car and, later, a smaller model. Under the agreement, China Brilliance will export the cars to most of Asia and Africa, with MG Rover having rights to sell them in the rest of the world.
The move represents a major breakthrough into the world market for MG Rover, which was sold by its previous owner, Germany’s BMW, to a group of British businessmen in 2000 after repeated losses. China Brilliance has already co-operated with several other foreign car makers, including Toyota, Renault and General Motors.