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MG Rover sale to continue

PricewaterhouseCoopers has announced that the sale of MG Rover will go ahead despite legal threats from failed rivals.

Administrator Tony Lomas said the bid from Nanjing was the clear winner due to it being an "unconditional contract that differentiated it from all other bids".

Executives from Chinese carmaker Nanjing Automobile are now in the West Midlands to begin the search for a management team and a new car production site after placing the winning bid to buy MG Rover.

Who owns what in the fight for MG Rover?

Shanghai Automotive Industry Corpotation

  • The intellectual property rights to Rover 25, 75 and the K-series engines, used by the range. SAIC owns no equipment with which to make Rover cars.
  • It could build new equipment, but this may be costly

    Nanjing Automobile Corporation

  • The MG marque and intellectual property associated with MG variants, which include cars based on the Rover 25, 75, 45 and those using K-series engines – the MG ZR, MG ZS, MG ZT and MG TF
  • The MG Rover assembly lines, the Powertrain engine plant and research and development capabilities

    BMW

  • The Rover name, though it is not thought that any party wants to license it.

    St Modwen

  • The property company owns the Longbridge site and some buildings that it leased to MG Rover and is willing to lease to a new occupant.

    Honda

  • Has claimed some intellectual property rights relating to the Rover 45, which SAIC has not bought, and its MG variant, the MG ZS, which Nanjing has. But Nanjing says this will not impede manufacture.

    What are the problems with the deal?

    Because MG saloon variants of Rover cars, MG ZR and MG ZT, share common components and design, Nanjing believes it can build the cars it wants.

    SAIC believes that it has exclusive rights to the development of the cars and engines based on the 25 and 75 platforms.

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