MG-Proton alliance falls through

20 August 2004

MG Rover will not join forces with Proton to produce a replacement for its ageing 45 small family car, contrary to recent speculation.

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MG Rover will not join forces with Proton to produce a replacement for its ageing 45 small family car, contrary to recent speculation.

Reports this week suggested that Proton’s new Gen-2 five-door small hatchback would form the basis of the next 45. However, the Malaysian car maker said: ‘We have decided not to proceed with the proposed collaboration as both companies have concluded that the projects were not financially viable.’

Talks between the two companies began in February this year, but the unsuccessful outcome means MG Rover is still looking for a partner to help it develop the next 45.

The British company began discussions with the Chinese Shanghai Automotive Industry Corporation (SAIC) in June about a possible tie-in, although there has been no indication yet on whether they will work together or when a new 45 might appear.

The earlier collapse of talks with another Far East car maker, China Brilliance, has already delayed the arrival of the next 45.

MG Rover unveiled a concept version of the car at the Geneva Motor Show in 2002, and had originally hoped it would be on sale this year. Now the company is unable to say when the car might arrive.