Chinese car manufacturer Nanjing Automobile says it will invest £10m to resume production of the MGF sports car at Longbridge.
Up to 15,000 cars a year may be assembled at the West Midlands plant for sale across the UK and Europe.
Work at the Longbridge plant will not start until 2008 at the earliest, as Nanjing's Chinese factory (which will supply the cars in kit form) has not yet been built. The cars are expected to go on sale in 2009.
About 80 people currently work at the site and more may be taken on in future, Nanjing chief Yu Jianwei said.
Lotus is helping develop future models for Nanjing Automotive, whatcar.com has learned. It is working on possible new models on Nanjing's behalf, similar to the way it helped Malaysian manufacturer Proton some years ago.
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