News : MG Motor UK posts increasing losses in 2011
MG Motor UK’s Longbridge operation has lost £4.6m during 2011, deepening of the financial deficit of £392,000 posted in 2010. The disappointing performance follows a year of poor MG6 sales – which, the company warns, won’t improve until the arrival of the turbodiesel ’6, B-segment MG3 and C-segment MG5.
This time last year MG Motor UK reported that it had cut its annual deficit from over £12.7m in 2009, but this positive performance has been arrested. Managing Director Hao Wang said in his Annual Report for 2011: ‘The company generated a turnover of £11,363,000 in 2011. Revenues from vehicle sales increased by 18 per cent in 2011 over 2010.’
Mr. Wang added: ”The significant increase in operational loss was due to the reduction in parts sales and other income from group companies in 2011. Sales in 2011 were 304 units while 230 units were sold in 2010. It has been a challenge to introduce new models in the UK market.’
MG Motor UK PR and Events Manager Doug Wallace said work had recently started on a £1.5 million redevelopment of the Design Centre to double its size, allied to other investments in the Powertrain Test Centre and the factory ahead of the debut of the diesel MG6. ‘We are still very much in the early stages of building – we are building quite nicely,’ added Mr. Wallace.
[Source: Birmingham Mail]