Vauxhall will help MG develop its fledgling dealer network in the UK after signing a memorandum of understanding with the Chinese manufacturer.

The news follows incorrect reports from Reuters that Vauxhall would be selling MGs from its UK showrooms. The report prompted Vauxhall to reveal its network development team would work alongside MG after signing an MOU.

GM UK and Ireland said in a statement: "SAIC and GM have a significant joint venture in China.

"As a part of the General Motors Corporation - the UK is GM's fourth largest market - Vauxhall is pleased to assist its global organisation.

"Vauxhall Motors' retail network development department is assisting SAIC/MG Motor (through an MOU) with network development to enable MG Motor to develop its retail network in the UK. Opportunities being discussed do not include selling MG Motor products alongside Vauxhall in the same showroom."