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MG Rover sued for £58m

Yorkshire car importers Motor Vehicle Industries are sueing MG Rover for £58m for allegedly reneging on a deal to sell imported Indian Tata and Russian Avtogaz cars and pick-ups through the UK carmaker's dealer network.

Rover is currently in negotiations with Tata to use its small Indica car as the basis for a new small Rover to compete with the Peugeot 106. Motor Vehicle Industries claims that these negotiations are contrary to the agreement it says it had with MG Rover.

MG Rover, which is thought to be closed to agreement with the Indian carmaker, has pledged to fight the case.

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