MG cars could be set for relaunch

Date: 31/12/2007 15:00

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The purchase of MG by Shanghai Automotive Co (SAC) could see a relaunch for the popular British car maker, it has emerged.

According to Reuters, SAC has secured the acquisition for an estimated $286 million (£143 million) as part of a deal which is hoped will reinvent the badge in the same way BMW rejuvenated the Mini.

It is thought that the size and power of SAC, which is comparable to that of Fiat or Hyundai, could be a valuable asset to MG although one business analyst has warned that the launch could face "a bumpy road ahead".

Chen Qiaoning, an analyst at ABN Amro Teda Fund Management in Shanghai, said that the market could prove tough to break for SAC but added that funding would not be "a major concern" for the firms involved.

2007 saw the reintroduction of the MG TF by the manufacturer's previous owners the Nanjing Automobile Group.


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