MG Rover denies takeover reports

MG Rover’s boss has denied reports that the company is to be taken over by Chinese firm Shanghai Automotive (SAIC).

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MG Rover’s boss has denied reports that the company is to be taken over by Chinese firm Shanghai Automotive (SAIC), although he said the suggestions were ‘flattering’.

Industry paper Automotive News Europe yesterday reported a source within MG Rover as saying that SAIC would eventually take control of the Longbridge-based firm.

MG Rover chairman John Towers today played down the suggestions, saying: ‘We are in a major collaboration with SAIC but I have to say that within these negotiations there has been absolutely no discussion at all about an acquisition of the business.’

A spokesman for MG Rover said the company had no idea who the source quoted in the ANE report was, but added that the negotiations started with SAIC in June were ongoing.

The spokesman said an announcement on how the two companies may develop and build cars together will be made in the next few months.

A collaboration between the two companies would help MG Rover to deliver a crucial and much-delayed replacement for its aged 45 small family car. Originally scheduled to go on sale this year, the new model is now due to be launched late in 2005.