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China deal threatens Tata agreement with MG Rover

MG Rover's proposed deal with the Shanghai Automotive Industry Corporation is causing disquiet at another corporation with which the UK firm has a long-standing deal with.

Tata Motors has a two-year old deal with MG Rover to provide small cars, made in India and sold under the City Rover brand in the UK.

MG Rover is close to agreeing a joint venture with Shanghai Automotive Industry Corporation (SAIC).

But, according to the Hindustan Times, Tata has said that the proposed Chinese deal could lead "to no engagement at all" between his company and MG Rovers.

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