Doubt cast on Nanjing Auto's plans for UK plant

Widespread scepticism has greeted a plan by Nanjing Automobile Group to invest hundreds of millions of pounds into producing cars at the MG Rover plant in Birmingham it bought in July.

Nanjing Auto vice-president Wang Qiujing said at the plant last week that production of two existing MG models could restart late next year, with the aim of lifting output, including new models, to 100,000 within five years, and employing 1,200 workers.

Nanjing Auto is one of the weakest carmakers in China, ranking only 11th among domestic producers last year, and does not have the capital to make such a large investment in Britain. But it has every reason to make promises while it moves the key equipment to China.

Last month, convoys of lorries began shipment of the machinery used to make Powertrain engines, which it will produce at a new plant in Nanjing, due to begin in the second half next year. It is employing 400 staff and contractors at Longbridge to oversee the removal.

Mr Wang said the future of Longbridge was linked to that of Nanjing, which would allow it to take advantage of a competitive global supply chain and share new product development. It is hoping to resume production in Britain of the MG TF sports car and MG ZT saloon.

But the question overhanging the promise is who will provide the hundreds of millions of pounds needed to resume production.