China Watch : SAIC Motor to sell MGs through GM’s UK Dealers?

Carole Nash Classic Insurance Specialists

Automotive News Europe/Reuters, 13th December, 2010

BEIJING/SHANGHAI (Reuters) – Chinese automaker SAIC Motor Corp. could be granted access to partner General Motor Co.’s UK sales network, a senior GM executive said on Monday.

“We have agreed in a memorandum that we would discuss the potential for MG to be distributed in the UK,” Kevin Wale, President and Managing Director for GM’s China operations, said at a Reuters’ event. “That’s what we are doing at the moment.”

Wale said no discussions have been held on sharing GM’s Dealer Network in North America. The UK deal would make SAIC Motor the only Chinese automaker to secure access to a partner’s overseas Dealer Network.

SAIC Motor became the owner of MG Rover’s 10,000-unit Longbridge plant in Birmingham, England, after a merger with its much smaller peer, Nanjing Automobile Group, in late 2007.

The Chinese automaker plans to start making the MG6 in the UK by the end of this year and sell them across the European Union, its Chairman, Hu Maoyuan, told Reuters in January.

In November, SAIC Motor bought a nearly 1 percent stake in GM when the top Detroit automaker returned to the stock market with a more than $20 billion initial public offering

[Source: Automotive News Europe/Reuters]

Clive Goldthorp

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

1 Comment

  1. Hmm… This is just what MG needs if it wants to sell significant numbers of MG6s in the UK, but what’s in it for GM? Why risk cannibalising their Astra/Cruze/Insignia sales?

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