Blog: Green shoots?

Carole Nash Classic Insurance Specialists

news0705_04

SAIC and Martin Leach have signed a letter of intent…

THERE’S no doubting that it has been an emotional day – a two-minute silence at 12.00 to remember last week’s atrocities overshadowed all of our lives…

However, some very good news brightened MG Rover fans – at just gone 4.30 this afternoon, a joint press statement for Magma and SAIC announced that the two parties had joined forces to bid on MG Rover’s assets. If there was a familiarity to this business model, there should be – essentially, it was the MGR-SAIC joint venture project, but with different management, very few financial liabilites.

The aim of Magma is to produce cars and engines at Longbridge, and become the Euroean head of R&D for SAIC.

Okay, the terrible events that led to Phoenix calling in the receivers meant that 5500 workers at Longbridge and a whole load more in the sales and supply chain have been lost, and that damage will not be easily repaired. Especially to the communities in Birmingham which have had their hearts ripped out of them. But after a couple of months where the thought of renewed production at Longbridge looked like a lost cause, this is good news indeed.

Of course, there are two other bids to consider, including Nanjing (a former potential JV partner to MG Rover), and one other British bid (probably David James or Triple-A), but the reality is that with so much going for it (finance, IPRs, managerial savvy in the case of Magma), this has probably emerged as the most credible bid…

And I must admit that for the first time in months, I am beginning to feel a little less than dread when I ponder the future of MG Rover.

I just hope that Magma pulls it off without a hitch…

Keith Adams

Keith Adams

Editor and creator AROnline at AROnline
Created www.austin-rover.co.uk in 2001 and built it up to become the world's foremost reference source for all things BMC, Leyland and Rover Group, before renaming it AROnline in 2007.

Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...

Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.
Keith Adams

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.