MG Rover's Tata deal signed

MG Rover's on-going talks with Tata over a joint venture for the production of a small Rover have come to fruition – the partnership will produce a new vehicle in 2003.

The new vehicle, based on the Tata Indica platform – will be manufactured at the Indian carmaker's Pune Factory and be sold through the UK and Europe by MG Rover's dealer network.

The deal has already run into trouble before the ink was dry: a Yorkshire-based vehicle importer of Tata vehicles, MVI, is suing MG Rover for breach of contract.