Shanghai Automotive Bids for MG Rover

The future of MG Rover is likely to be decided in the next few days after Shanghai Automotive Industry Corporation re-entered the bidding in partnership with a former Ford executive.

SAIC’s confirmation of a strategic collaboration with Magma, which is run by Martin Leach, a former Ford Europe boss, and Ed Sabisky, a former General Motors executive, came after the administrator (PricewaterhouseCoopers) had threatened to sign a deal with its Chinese rival, Nangjing Automobile Corporation.

Tony Lomas of PricewaterhouseCoopers called Tony Woodley, general secretary of the T&G union, who has been involved in the talks, to say that the deal would be done with Nangjing in the absence of another bid.

PwC has also confirmed that there are now three bids being considered. The third is backed by David James, the company doctor, who is attempting to get financing from the Government. However, it is widely thought that the battle is now a two-way fight between SAIC and Nangjing, The Times has reported.

Mr Lomas said: “We are locked in detailed discussions with three separate parties, each of which is at a different stage of completing its negotiations…All three are intending to acquire all of the car and engine production assets of both MG Rover and Powertrain (the engine plant).”