AM Online

CityRover partnership under threat

The future of the CityRover is uncertain as MG Rover’s partner in the car, Tata Motors, has threatened to dissolve its agreement if arguments over pricing cannot be resolved.

MG Rover is trying to persuade the Indian carmaker to agree to a price cut on the CityRover, a rebranded Tata Indica for the UK market, currently retailing for £6,495 to £8,895. Sales since its 2003 launch have been poor and many here see it as overpriced. But Tata is standing firm.

Ratan Tata, the group’s chairman, told the Financial Times if the current disagreements could not be resolved it “would talk of a dissolution”. The two businesses are expected to hold further talks this month.

An MG Rover spokesman confirms that the two parties are in tense discussions. “We’re trying to maximise the competitiveness of our position,” he adds.

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