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SAIC expected to buy slice of Powertrain

Shanghai Automotive Industry Corporation is expected to continue with negotiations to acquire parts of Phoenix Venture Holdings' engine business Powertrain.

The deal is expected to go ahead despite SAIC's withdrawal from negotiations to invest millions of pounds in MG Rover, a decision that has forced the company's owner Phoenix Venture Holdings this afternoon to appoint PricewaterhouseCoopers as administrators.

MG Rover supplier and transmission manufacturer Antonov says in a statement today: "It is our expectation that SAIC will seek to acquire parts of Powertrain Ltd as a stand alone business unit.

"This will enable the current product development plans to continue. If this is not achieved, we expect to reach agreement directly with SAIC (or its affiliated transmission manufacturer Shanghai Automotive Gear Works) to enable their automatic transmission plans to be maintained."

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