Carole Nash Classic Insurance Specialists

Press Report : Vauxhall denies reports that UK Dealers will sell MGs

Autocar, 14th December, 2010

Vauxhall has denied reports that its Dealer Network could be used to sell MGs as the brand returns to a full-scale British sales effort.

MG has been owned by GM’s Chinese partner SAIC Motor since 2007. GM’s regional boss in China has claimed that the firm is in talks with SAIC Motor that could allow the classic British brand access to GM’s Dealer Networks in the UK – which means Vauxhall and Chevrolet.

The move would be a key one for SAIC Motor, which is keen to expand across Europe in 2011 and 2012, because it would give it considerably wider reach than any roll-out project could achieve, and in a much shorter time frame.

“We have agreed in an MoU [Memorandum of Understanding] that we would discuss the potential for MG to be distributed in the UK,” said Kevin Wale, GM China’s President and Managing Director. “And that’s what we are doing at the moment.”

However, Vauxhall has since clarified Wale’s comments. “SAIC and GM have a significant joint venture in China,” said an official Vauxhall statement. “As a part of the General Motors Corporation – the UK is GM’s fourth largest market – Vauxhall is pleased to assist its global organisation.

“Vauxhall Motors’ Retail Network Development Department is assisting SAIC/MG Motor (through an MoU) with network development to enable MG Motor to develop its retail network in the UK. A number of possible opportunities will be explored under the MoU but these do not include selling MG Motor products alongside Vauxhall in the same showroom.”

SAIC Motor expects to start series production of the MG6 at the Longbridge production facility early in 2011, with first deliveries of new UK-built models in April. MG is also preparing to launch the MG3 small hatchback at the Guangzhou Auto Show in China later this month.

[Source: Autocar]

Posted in: AROnline News, MG

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