: Nanjing to build MG's in Oklahoma
"Today Nanjing Automobile Group will announce that the company will build the MG TF Coupe at a factory in Ardmore, Oklahoma by 2008 and locate its American and European headquarters 90 miles north in Oklahoma City. The new plant will create 500 new jobs for the area. The MG TF Roadster, meanwhile, will be assembled at MG's plant in Longbridge, England."
http://www.autoblog.com/2006/07/12/mg-tf-coupe-will-be-built-in-ooooooklahoma/
"DETROIT, July 11 — Can the mystique of a British sports car be recreated by a Chinese company in America’s heartland?
Following in Japan's Tracks That’s the bet by Nanjing Automobile Group, which plans to resurrect the fabled MG marque in a tricontinental demonstration of how truly global the automotive industry has become.
Nanjing, which purchased the assets of the bankrupt MG Rover Group last year, aims to be the first Chinese carmaker to open a factory in the United States. The company has scheduled a news conference for Wednesday in Oklahoma to announce plans to build a newly designed MG TF Coupe there, starting in 2008. It said the coupe would compete with cars like the Mazda Miata, which sells for $20,000 to $25,000.
It also will assemble a convertible TF Roadster version at MG’s now-shuttered factory in Longbridge, England, and three sedan models in China. American and European operations for MG Motors will be based in Oklahoma City, 90 miles north of the new factory in Ardmore, Okla.
MG’s rebirth under Nanjing, which said it had $2 billion in financing for the endeavor, comes as several Chinese companies are setting their sights on the United States, the world’s largest car market.
Several Chinese carmakers have said they are two to three years away from exporting vehicles to the United States. One, Geely Automobile, displayed a $10,000 sedan at this year’s Detroit auto show, although the car fell short of American safety and emissions standards.
Geely and Chery Automobile, a state-owned company that has sparred with General Motors over the similarity of its name to the Chevy nickname for the Chevrolet brand, plan to sell cars in the United States in 2008. Only Nanjing, however, has said it intends to build vehicles outside China, where it will face higher labor costs than in its home country.
“We want to be a global company,’’ said Duke T. Hale, a former executive at Mazda, Isuzu and Lotus who will be chief executive of MG Motors. “We don’t want to be a company that simply exports out of China. We don’t want to be seen as just another Chinese car company.’’
Nanjing also is unique among the Chinese car companies in its plan to revive an established brand with a Western following. Mr. Hale called that a critical advantage the company held over its Chinese rivals. “I’ve got a brand name that still resonates,’’ he said.
The company says its lineup will be true to MG’s heritage, to the delight of enthusiasts such as Roger Parker, a technical consultant with the MG Owners’ Club.
The club, run out of a large MG parts shop near Cambridge, England, has about 40,000 members worldwide. Many live in the United States, despite the brand’s 26-year absence here.
“If they don’t get the product right, they will certainly do damage that will be difficult to recover from,” said Mr. Parker, whom Nanjing officials consulted about their plans. “It’s clear that they are very committed and very conscious of the rich history that they have bought.”
MG’s limited appeal will ensure that Nanjing remains merely a niche player here.
But construction of the first Chinese auto plant in the United States, which will create more than 500 jobs, carries a great deal of symbolism about the industry’s future.
“It wasn’t very long ago that nobody believed the Japanese would build plants in the United States,” said David E. Davis Jr., who co-founded Automobile magazine and now runs an online publication for car lovers called Winding Road. After Lee A. Iacocca, the brash chairman of Chrysler, challenged them to do so, Mr. Davis added, “they did, and they blew everyone’s pants off.”
MG, originally called Morris Garages, began selling cars in the 1920’s. Its iconic TC convertible was a big hit in the United States after servicemen grew attached to earlier MG models in Europe during World War II.
“MG was really an integral part of the foreign car revolution that started in the late 40’s and early 50’s,” Mr. Davis said. “They weren’t terribly good cars, but they were so different and they were so much fun to drive that we all forgave them for their lack of reliability and fragility.”
The brand withdrew from the American market in 1980, leaving a generation of enthusiasts longing for its return. Sales continued in other countries as ownership passed through several hands, including Honda and BMW, until production ceased in April 2005 and all 6,000 workers at the factory in England were let go.
“It’s the first sports car that I remember as a child,” said Paul Fucito, who grew up around the corner from an MG dealership in New Jersey and remembers its closing.
Mr. Fucito, 34, a spokesman for George Washington University, has never lost hope that he will one day own an MG, although the company’s bankruptcy last year raised doubts for him about the chances of that happening. He participates in several online forums devoted to the brand and fantasizes about a new MG, painted British racing green, with wire wheels and chrome accents.
“It’s been that dream car that I’ve always wanted,” he said.
Several automakers have capitalized on demand for nostalgic nameplates in recent years, including BMW with its modernized Mini Cooper. Chevrolet has been deluged with requests to bring back the Camaro after it unveiled a concept version in January.
Jeremy Anwyl, president of Edmunds.com, a Web site that gives consumers advice about buying cars, said MG had the potential to join the list of successfully resurrected marques, as long as Nanjing kept quality high and prices low. “It’s not just a question of slapping an MG brand on something and expecting it to be an automatic success,” he said.
Mr. Anwyl expects to see the new MG models sporting the brand’s distinct vertical grille and octagonal logo but without the flaws of earlier models.
“Hopefully some of the electrical problems you wouldn’t bring back,” he said. “If you really want to go for nostalgia, you put on a leaky roof.”
http://www.nytimes.com/2006/07/12/business/worldbusiness/12auto.html?_r=2&adxnnl=1&oref=slogin&adxnnlx=1152678436-YTMEE8/uIQ71hCq3RgN2tQ&oref=slogin
http://graphics8.nytimes.com/images/2006/07/12/business/12auto.span.jpg
proximal 07-12-2006, 03:05 AM This doesn't make any sense, but maybe I'm missing something. They're going to build and staff a brand new factory and establish headquarters in the middle of a country they've never been in before? To build a car that could easily be built at an existing factory? It doesn't seem like they're going to be building a whole lot of cars, so it hardly seems worth the investment.
Windy 07-12-2006, 07:37 AM :lol: :D :thumb:
Forget Bricklin etc - MG is coming to the USA!!!
Another big announcement is due next Monday covering the UK operations.
Why are there no steeling wheels on the cars and why are the flags flipped left to right? ;)
dragin 07-12-2006, 10:50 AM "Today Nanjing Automobile Group will announce that [U]the company will build the MG TF Coupe at a factory in Ardmore.....
....Nanjing also is unique among the Chinese car companies in its plan to revive an established brand with a Western following. Mr. Hale called that a critical advantage the company held over its Chinese rivals. “I’ve got a brand name that still resonates,’’ he said........
The question of NAC keeping the MG name has been discussed a lot on this forum. I think the words of Hale show just how enduring the brand still is among folks in the U.S.. The name MG may mean nothing to the younger generation now, but when lofty words of reminiscence are uttered by the older generation, that is sure to change.
Windy 07-12-2006, 11:04 AM but when lofty words of reminiscence are uttered by the older generation, that is sure to change.
helped considerable by the history of the brand. Eg. there aren't many other brands that can say - Last time we came to the USA we went to Bonneville and took home a world speed record - http://www.peterstevensdesign.co.uk/speedrecords.htm
Seems like a great collector's item for car fanatics.
Puppetland 07-13-2006, 07:36 AM The question of NAC keeping the MG name has been discussed a lot on this forum. I think the words of Hale show just how enduring the brand still is among folks in the U.S.. The name MG may mean nothing to the younger generation now, but when lofty words of reminiscence are uttered by the older generation, that is sure to change.
Part of the appeal of the MG brand in the USA was the heritage of British production. An MG made in America may not have the same appeal. :eek:
MartinW 07-14-2006, 04:29 AM Presumably that's why the MINI has done so well, owned by BMW, made in the UK, and selling well globally, then, Puppetland. Didn't BMW consider building MINI in China?
An MG, owned by a little known (in the Western world) Chinese company, made in Ardmore is less likely to succeed?
With the right marketing campaign playing on the fact that MG is and was intrinsically part of the US sports car scene will surely help, and with the Made in US tag it can only help.
MINI was a marketing success, the Mini had had a brief appearance in the US between it's launch and 1973, yet its return worked, probably better than the Beetle's return.
MG has an edge, 80% of production went to the US between the 40s and 1980. There are more MG enthusiasts today in the US likely to order one than ever there were Mini fans before the launch of MINI. Sure, some of the MG enthusiasts won't be keen if it is not built at Abingdon, but I would think that the right marketing would work. Even with its various recalls, MINI has succeeded.
Puppetland 07-14-2006, 08:01 AM MINI is not the argument. It has succeeded where as MG is still locked in limbo and the subject of many 'letters of intent' and endless press conferences.
Even with the right marketing campaign I fear and American MG will struggle to make enough impact in the USA to make the operation profitable. I just hope they give it the best start possible; they must get the product right and not launch with a rehashed version of the mediocre MG TF.
I feel extremely under whelmed by the proposed sketches of the 'new' Modern Gentleman I have seen so far.
MartinW 07-14-2006, 08:17 AM I didn't say it was the arguement, I only use it as a precedent that shows with the right marketing, a car can succeed for an audience that has not seen the badge in over 25yrs.
At this stage it is too soon to start marketing a product that as yet does not exist, and yes, it has to be good from day one. We wait and see.
I didn't say it was the arguement, I only use it as a precedent that shows with the right marketing, a car can succeed for an audience that has not seen the badge in over 25yrs.
At this stage it is too soon to start marketing a product that as yet does not exist, and yes, it has to be good from day one. We wait and see.
MartinW's got a point...in the end it all comes down to marketing....
you can sell a rock if you have good marketing
but for good marketing you need good financial resources...so i hope MG/Nanjing gets a good response for funding in the US
dragin 07-14-2006, 10:57 AM .........There are more MG enthusiasts today in the US likely to order one than ever there were Mini fans before the launch of MINI. .......
I agree MartinW.....Mini had a much narrower following in the US before its revival.
Brand brand brand....
Now it should be interesting to watch VW try to revive the Rabbit....
Admin 07-14-2006, 12:15 PM I agree MartinW.....Mini had a much narrower following in the US before its revival.
Brand brand brand....
Now it should be interesting to watch VW try to revive the Rabbit....
A lot of the marketing with the Mini was helped with the powerful engine and the image that is was sort of branded under BMW and also because of movie Italian Job gave much exposure to it
MartinW 07-14-2006, 04:59 PM I hate to disagree, but the MINI does not offer a powerful engine. It certainly offered above average handling, one of its strengths often noted, but the two engines on offer at launch were the same South American Chrysler unit either chipped to 90bhp (MINI ONE) or 115bhp (MINI Cooper). It took until the supercharged version before anything like an engine matched the chassis at 160bhp.
The car was largely designed by Rover engineers, and should have had the K series engine. Whilst the K series was noted for its ability to eat head gaskets, that problem could have been resolved easily enough as it subsequently has been with below industry average HGF noted since 2003 on the notorious MG TF models. The K series offers an engine weighing just 100kgs which even in the basic MG ZR offer 105bhp from its 16valve set-up with a better acceleration than even the Cooper, and better fuel efficiency. The more sophisticated VVC 1.8L offers 160bhp, too, as does the 1.8L turbo unit.
Therefore, I think MINI was a great marketing exercise that played heavily on the cheekiness of the original, promising its owner an adventure, and that marketing strategy kicked in before the BMW sell-off of Rover. I agree that its association with BMW has undoubtedly helped and had it been an MG Rover group product, the public would not have tolerated the various recalls as obligingly. More to the point BMW have often emphasised the fact that the MINI is a standalone brand in its own right, but I am sure the association has a big impact, despite its UK design and build. The Italian Job would also have helped push sales on but the movie was post the release of MINI, and was originally to have featured the VW Beetle.
Another advantage of the MINI is the servicing schedule, you pay £100 on purchase and get 5 years free servicing which means the initially high purchase price is somewhat more understandable, along with the promised high residuals that the trade allow for BMW/MINIs. It is however a car for single people and young at heart, it is an impractical car with limited space. However it is a car that makes a statement in a way that the all the others fail to do. And this is what sells cars, but that has to come from a good marketing campaign.
If Nanjing can produce a quality product, turn up the marketing, and price it right, then they have a winner globally for a two-seater sports car. Whether the same is possible with a saloon or hatch is debatable. But sadly, I suspect that both here and in the US, the prejudice towards Chinese products will be it's downfall, and here in the UK, the association with MG Rover products and the negative press of the last 5 yrs will not help.
Puppetland 07-17-2006, 12:43 PM If Nanjing can produce a quality product, turn up the marketing, and price it right, then they have a winner globally for a two-seater sports car. Whether the same is possible with a saloon or hatch is debatable. But sadly, I suspect that both here and in the US, the prejudice towards Chinese products will be it's downfall, and here in the UK, the association with MG Rover products and the negative press of the last 5 yrs will not help.
There are no definite plans that this will happen in the USA or UK for that matter. :nono:
Windy 07-17-2006, 01:11 PM There are no definite plans that this will happen in the USA or UK for that matter. :nono:
Yes there are: http://news.bbc.co.uk/1/hi/business/5186314.stm
Puppetland 07-17-2006, 02:31 PM I remember reading similar stories that SAIC were going to invest millions in to MG Rover to become a true global player. :rolleyes:
Windy 07-17-2006, 02:58 PM I remember reading similar stories that SAIC were going to invest millions in to MG Rover to become a true global player. :rolleyes:
Never trust SAIC!
But this is Nanjing and, excluding their potential American parteners, they seem totaly trustworthy.
I remember reading similar stories that SAIC were going to invest millions in to MG Rover to become a true global player. :rolleyes:
Can you remember where you read it from? I would be glad to read those articles.
I remember reading similar stories that SAIC were going to invest millions in to MG Rover to become a true global player. :rolleyes:
is this real_i_hate?:o
Windy 08-04-2006, 05:52 AM An interview with MG Motors North America:
Yeeow... A-yip-i-o-ee ay! MG Is Headed to O.K.
http://www.theautochannel.com/news/2006/08/03/017113.3.jpg
Special From Marty Bernstein
AIADA Contributing Editor
http://www.theautochannel.com/news/2006/08/03/017113.html
It’s not new news to anyone in the automobile business, but the iconic, heritage laden, prestigious British motor car brands are now part of global companies with varied successes.
Ford started it when they bought Jaguar several years ago. As this column is being written the Wall Street Journal reported Ford is investigating whether to sell some assets including Jag and possibly Land Rover which it bought from BMW a few years ago… but I digress.
The next Brit brands in play were Bentley and Rolls-Royce, both of which had fallen prey to sagging economies, limited sales and quality problems. In the infamous corporate, high stakes, $600+ million poker game between Volkswagen and BMW, Bentley was acquired by VW and BMW won Rolls-Royce and Mini.
This was well detailed by David Kiley in his book, Driven. At this time, it’s difficult to say who won. Bentley has a wider range of vehicles and has outsold Rolls-Royce, but the Mini, albeit much less expensive, has been a phenomenal success.
And recently, the fortunes of other British automobiles, Rover and the famous MG brand had fallen on bad times and were in the UK equivalent of Chapter 13. Rover was never a success in America, but at the end of WWII, returning GI’s brought home a really cute little MG sports car, the TC model.
Over the next years, other models were introduced including the MG-A, MG-B and MG-Midget, and sales for MG totaled over 500,000 vehicles until 1980 when MG left the American marketplace. This was a sad departure for many MG enthusiasts including, yours truly, who owned a red MG-A.
To the astonishment of many auto pundits and analysts, a Chinese automotive manufacturer, Nanjing Automobile Group, bought the remnants of both companies – tools, dies, plans and factory – for almost $100 million USD. Brits were shocked and appalled, but that’s only part of the story.
Less than a month ago at a media conference in Oklahoma City, Oklahoma (yes, Oklahoma just like the musical), officials of the Nanjing Auto Group announced the formation of MG Motors North America as well as plans to build a factory in Ardmore, OK.
The goals? To revive, resuscitate and resurrect the MG brand in North America. And to head the new global venture in the UK, Europe and North America, Duke T. Hale, a veteran automotive executive, was named president and CEO.
This was all the fodder I needed to have a lengthy telephone conversation with Duke as he was about to board an airplane.
The new look of MG Motors
http://www.theautochannel.com/news/2006/08/03/017113.2-lg.jpg
MB: Duke, first of all, congratulations on your new assignment. DH: Thank you. It’s the culmination of over 25 years experience in the automobile industry with Mazda, Volvo, Isuzu and Lotus. It’s an opportunity I aggressively went after.
MB: It’s a quarter of a century since a new MG was sold in America, what is left of the brands’ equity except those in a certain age group?
DH: Most people of that age remember the MG-A, MG-B and the MG Midget, but we see two audiences for the MG. The one just mentioned is built-in because there are a lot of people in that group including boomers who recall MG’s. We think there will be strong appeals here, especially, the thousands of members of MG Cars Enthusiasts’ Clubs in North America.
MB: How will you reach a younger buyer? Will you follow the model established by Mini?
DH: We’re not opposed to taking a page or two from the Mini Cooper book. I’ve studied that closely. They did it very well and were very targeted in their approach. They were not blasting all over television – it was not a shotgun approach. A lot of event marketing, Internet, former owners and club members, bill-board, print and public relations and publicity. We will not copy their pattern exactly, but will pick the best and marry it to some of our own ideas.
MB: How will you determine effectiveness and impact potential?
DH: We’re about to find that out. We will do extensive research in North America and some has already started with focus groups. The goal is to find out what drives them -- including social interaction sites like My Space – to a brand. It will help us target that younger group of potential MG buyers. We need to generate and resonate in their minds that MG is cool or whatever the current term is to express cool.
MB: Mini used extensive pre-launch public relations and publicity, a new strategy at the time to introduce an old brand in a new way. Does MG have the same opportunity?
DH: Glad you mentioned that because you’re 150% accurate. Public relations and publicity will be one of the pillars of my marketing plan. As a matter of fact, one of the first people who joined MG was Kim Custer who heads our public relations and publicity area. Since our press media conference in Oklahoma a couple of weeks ago we’ve had over 300 different articles appear about the reintroduction of the brand.
MB: News coverage for Chinese auto manufacturers coming to America has been mixed; from positive to downright negative. What reaction has the MG news generated?
DH: Most of it was very positive. I did not read all of them; journalists being journalists, sometimes there are negatives, but the majority of them were positive.
MB: What have been the negative perceptions and reactions?
DH: The question in some has been -- “Can they produce and present a quality product built in China?” – which is a fair question. I have no issue with the media asking that. The proof will be in the pudding. I’m going to tell you we’re going to build a quality product and they’re going to continue to question it, but until the independent quality awards (IQ and CSI) first come out nobody is really going to know.
MB: Nanjing is one of China’s oldest, but smaller automotive manufacturers, isn’t it?
DH: There are some misconceptions about Nanjing being small, but not quite true. Nanjing has a joint venture with Fiat and Iveco truck. They are building cars of their own brand and also build commercial trucks. So, while some have slanted the news saying they [Nanjing] are “a small maker of cars” in my view they are not telling the total story.
MB: What is the total story?
DH: In addition to the JV’s, they bought MG for $97 million USD, a buy many people questioned. And by the way, they are building a new, technologically advanced production facility just outside Nanjing at a cost of $1 billion USD, exclusively for MG. They are also building a powertrain facility at a cost of $400 to $500 million, and an all new $100 million headquarters for MG. Are they committed? If you’re writing checks for over $1.5 billion for new facilities and that’s before the cost acquisition of MG and the assets they bought at auction from the old MG Rover Group and other expenses for product upgrades.
MB: That’s lot of money on a new venture with a brand that had not done that well over the years. Obviously, you and they believe the future has great potential, right?
DH: They’ve got to be at least $2 billion plus into the project right now. That’s not stuff they’re going do, that’s what they are doing. It’s not just a plan; they are building the buildings as we speak. I don’t know how much more commitment can be made than that.
MB: Several companies have talked about making cars in China and selling them in America, what is the opportunity you see?
DH: We have the opportunity as well as other Chinese manufacturers and some from Korea and India to produce vehicles at a lower cost. And since Nanjing will produce our powertrains, engines and transmissions at a low cost this gives us an advantage.
MB: But cost alone does not sell a new car, there are many other factors in the equation. What advantage does MG have as a Chinese car company?
DH: We are a European car! I am not positioning us as a Chinese car. MG is a recognizable European brand – research proves it still has positive equity. It’s European designed, that’s a fact; European engineered, that’s a fact; and they’re not going to be built just in China.
MB: Where else will MG’s be built or assembled?
DH: There are three sedans from China and there will be two sports cars – the roadster from the Longbridge factory in England and a coupe in Oklahoma. We think this positions us as a global brand as opposed to just another Chinese car. We have the opportunity to get a lot of mileage and power out of the brand and its European heritage; we are a global car company not just another Chinese car company.
Windy 08-04-2006, 05:53 AM ... Continued:
MB: I don’t mean to be a geographic snob, but Ardmore, Oklahoma?
DH: There are several advantages to Oklahoma that most have not quite figured out yet. Our financial partner, Michael Davies, head of a company called Sovereign Oklahoma Development and others, has leased and owns close to 3,000 acres that will be a global airfreight hub. It’s just unbelievable – fully loaded 747’s can and are landing, and after the runway is extended, it will be take-off fully loaded; there’s a rail-head that comes into the site; surface carriers have a hub for freight; the site is not that far from the Port of Houston for sea transports that need to be brought to the new factory; and there’s a good labor supply nearby. MG will have 575 jobs in Oklahoma including, the new factory, corporate headquarters in Oklahoma City, and research in Norman, Oklahoma.
MB: Who are other partners?
DH: One of our partners down there is the Chickasaw Nation. People have not started to figure this out, but if we decide to put/build something on sovereign land the tax situation is quite different.
MB: That’s called almost negligible, isn’t it?
DH: (Laughs) Yeah, exactly. We are doing feasibility studies relative to the advantages of building on sovereign land. It could be that we could assemble a vehicle practically at the same price level as one could build one in China. And, this will come as a big surprise to the rest of the world.
MB: And to most of the readers… Is it going to be a good business for Oklahoma too?
DH: Yes, it’s good business. If we can help expand the business and commerce in that area and provide more jobs, that’s a good thing we bring to the economy. And having the headquarters in the same state as the factory appears to be a growing trend. A company can be run and managed far more effectively and efficiently when it’s near the factory.
MB: What are you doing to set up operations and an infrastructure?
DH: We’re going to start in Europe: I’m relocating there in August. We are now making offers to bring talented, experienced people to the new team, many of whom people will know. There will be Americans, Brits, Europeans and Chinese. We want to get the UK and Europe operations up and running in the spring of ’07, which includes when we start to build cars in the UK.
MB: When will you come to the U.S.?
DH: As soon as we’re up and running in Europe we will start putting a limited team in the U.S. during the first quarter of ’07. This group will be responsible for early planning, marketing, PR, setting up the dealer network, agreements – all the things that have to be done to launch a new brand. And we have basically a year and a third to get all this done.
MB: Overall, what has the reaction been – especially from potential dealers and consumers – to the news of the revitalization of MG?
DH: I’m overwhelmed. We are getting bombarded with requests for employment and dealer requests. The Oklahoma Chamber of Commerce has been getting calls from people who want to buy the car. I’ve launched a lot of new cars: Mazda, Volvo and Isuzu, but I don’t think I’ve ever had such an overwhelmingly positive response.
MB: Recently British auto brands are doing well here. Why will MG do well?
DH: We’ve got a lot of advantages we did not have before. Obviously, price and quality; and for the first time in the U.S., we will have a full line of products – the sports car, coupe, and small, medium and large sedans. That’s not a niche player selling 25- to 30,000 a year; we expect to sell a whole lot more. We’re going to surprise the world.
MB: How will you recruit and establish the dealer organization?
DH: Our dealers will be established the old fashioned way. Research will determine the best markets and the right locations, how many dealers we will need; the criteria for selection will include: real-world experience, existing facilities and their CSI ratings. Not all will be exclusive, but we will want dedicated showroom space. We want our dealers to have great return on their investment because profitable dealers put money back in the business and that’s how they will grow … and how we will grow.
MB: You’ve set a lot of goals for the brand, are there other business and personal objectives you’d like to see realized?
DH: I established three goals in addition to being a world class company manufacturing and selling world class cars. I want us to be in the NADA’s Top Ten ranking for CSI (Customer Service Satisfaction), in the top third of J.D. Powers IQS (Initial Quality Study), and want to be recognized as one of the Top 100 companies to work for in the world.
If Duke, his new associates, and partners are able to pull this ambitious business venture off in the limited time they’ve set for them selves, the bosses in Nanjing will be delighted they said hello to a good buy.
Aug 3, 07:40 AM 2006
MB: Who are other partners?
DH: One of our partners down there is the Chickasaw Nation. People have not started to figure this out, but if we decide to put/build something on sovereign land the tax situation is quite different.
MB: That’s called almost negligible, isn’t it?
DH: (Laughs) Yeah, exactly. We are doing feasibility studies relative to the advantages of building on sovereign land. It could be that we could assemble a vehicle practically at the same price level as one could build one in China. And, this will come as a big surprise to the rest of the world.
Whoa, they have the Native Americans helping them with this. Kinda sneaky using sovereign Native American land but what ever floats their boat I guess.
hazik 08-05-2006, 12:37 AM so the coupe will be sold in the US. The roadster convertible sold in the UK. And 3 MG sedans sold in China. Will you be able to buy the convertible in the US, or buy the coupe in the UK. And buy either the MG coupe or convertible in China.
MG aims to build US dealer network
http://vne-resource.iol.co.za/30/picdb/article0/5/2/94405
September 12, 2006
By Kevin Krolicki
Detroit, Michingan - MG Motors, which aims to revive the British sports car based on low-cost Chinese manufacturing, has plans to export the brand to the US from 2008 with a network of 300 dealers.
MG plans to begin selling a roadster and coupe in the US by June 2008 and that would make it the first Chinese automaker to market a car for American consumers.
Duke Hale, who heads MG Motors in a partnership with China's Nanjing Automobile, said at the Reuters Autos Summit in Detroit that while the venture had not yet begun to licence US dealers it was drawing up initial distribution plans focused on larger American cities
Initial plans call for at least 300 dealers across the US
.
"Based on our sales ambition and where we think our product line will be, we need to be looking at a dealer body that's about 300, up to 350, dealers," Hale said.
It was likely that MG would ask new dealers to run a showroom exclusive to the brand while allowing them to share a higher-margin parts and service department with other car brands.
Hale said MG would base some of the marketing for its comeback bid - including showroom atmospherics - on BMW's successful revival of the Mini Cooper, another famous British auto brand under new ownership.
"They create a great environment in there," Hale said of Mini Cooper dealerships. "They do everything from shoe shines to cafe latte to hooking up your computer to the Internet."
Hale said he expected the venture to remain on track despite some industry commentators saying MG might struggle to meet its launch date targets given the long lead times typical of the US auto industry
The venture will stay on track, despite the doomsayers, says Duke Hale
.
"We're planning to launch in June, 2008," Hale said. "I think the timetable is fairly reasonable."
Hale said he expected the venture could sell about 100 000 units a year by 2010 once it had a model line-up that included a sedan in addition to the TF roadster and TF coupe it plans to launch by mid-2008.
MG plans to build its first car for the revived brand at a plant in Longbridge, England, that Nanjing acquired when it bought the assets of MG Motors out of bankruptcy in 2005 for about $97-million.
That model - the TF roadster - will likely be sold initially through a network of about 90 dealers in the British market, Hale said. Initial test models of the TF roadster should be ready by early 2007.
Post-war hit
MG will sell through importers into other markets in Europe, including Italy, Spain and France.
MG also plans to assemble a TF coupe in Oklahoma based on kits manufactured by Nanjing in China.
MG's iconic TC convertible was a hit with US car enthusiasts after the Second World War although the brand was also dogged by a reputation for unreliability and pulled out of the US in 1980 in bankruptcy after going through several other corporate owners.
Production of MG cars ended in April 2005. - Reuters
http://www.motoring.co.za/index.php?fArticleId=3435063&fSectionId=753&fSetId=381
A three-continent partnership to bring MG sports cars back to market could provide Oklahoma with a "crash course” in how the Chinese do business, an author and China expert said Wednesday.
Oklahoma grabbed worldwide headlines last summer when Nanjing Automobile Group Corp. said it will join with Oklahoma Global Motors LLC to bring the British sports car brand MG back to life. The companies picked a location next to the Ardmore Airpark for one of two factories to assemble the cars.
Ted Fishman, the author of "China Inc.,” said Nanjing's MG deal to establish manufacturing in the United States was interesting because it chose a site away from traditional manufacturing and automobile hubs in the upper Midwest.
"This will give Oklahoma a crash course in many of the facets of the Chinese economy because Nanjing has been embroiled in a lot of trials and tribulations in China,” Fishman said. "This will be a one-stop shop for many of the important issues facing Chinese companies, including intellectual property issues and political issues within China that will be out of the control of Oklahoma leaders involved in the venture.”
jamila 12-25-2006, 03:15 PM how we contact Nanjing to distribute nanjing auto in syria.
Seamaster 12-25-2006, 07:09 PM http://www.nanqi.com.cn/doce/contact.htm
mgrovernut 12-25-2006, 08:23 PM how we contact Nanjing to distribute nanjing auto in syria.
What do you want to sell specifically?
god_bless_japan 12-28-2006, 01:31 PM how we contact Nanjing to distribute nanjing auto in syria.
sorry do u have no standards:nono: :mad:
sorry do u have no standards:nono: :mad:
why hate? appreciate my friend
god_bless_japan 12-28-2006, 06:19 PM why hate? appreciate my friend
good point, when i drive my 400bhp Nissan skyline GT_R i love every moment of it especially in the wet roads (we get a lot of rain in UK:) ) and have great respect for the Japanese people, they really know how to make a good machine. God bless em:thumb:
cryptonx 12-29-2006, 10:53 AM dude flooding the forums with short replies and love to ur car , won't get you anywhere here , or let me put it that way , won't make ppl listen to what you have to say .. all you care is post a reply , bash a chinese brand and leave
at least I hate china rarely gives some solid points , but you do not
god_bless_japan 12-29-2006, 11:03 AM at least I hate china rarely gives some solid points , but you do not
Hi there Cryptonix, i just joined yesterday, give me time to settle down, i will try to give solid points:thumb:
Why invest in such a shitty place as Oklahoma? That place has no industries for a reason, because it's a hellhole.
Rock-N-Roll 12-29-2006, 05:07 PM I thought Oklahoma was just somewhere you flew over while you were going somewhere else?
Actually, just wanted to post before god_bless_japan did
mg-zs 12-29-2006, 05:28 PM Nice one mate
Scroll way down to "MG Motors North America: Ardmore Plant":
http://en.wikipedia.org/wiki/Nanjing_Automobile_Group
Maybe they are getting that land for free or nearly free considering the tax breaks? There is a GM plant up the road that is supposedly "closed". Though I still see them loading rail cars with new Trailblazers..
Maybe that plant is too big or too old that it couldn't be used instead of building a brand new plant?
The GM plant is at a much better location then where the Chinese plan on building there plant at.
The plant is at the crossroads of I-35 and I-40. It has a huge rail yard behind it and excellent rail access already built. It has a brand new paint shop because of a tornado and it also supposedly has an environmental feature:
http://www.gm.com/company/gmability/environment/news_issues/news/ok_landfill_021005.html
http://www.local2209.org/default100c.asp
Just seems to me that it would be cheaper and a better, quicker deal to go ahead and use that plant that is already built then build a brand new one in a small town way down south.
Seamaster 01-23-2007, 06:10 AM NAC-MG have been rather more reticent about commenting on the Oklahoma possiblility than the gung-ho Americans have been.
Those with long memories will have been irresistably reminded of John Towers on BBC radio prematurely talking up SAIC's plans for their partnership with MG Rover.
As they say on A Question of Sport, "And what happened next?" :nono:
dragin 01-23-2007, 11:19 AM Just seems to me that it would be cheaper and a better, quicker deal to go ahead and use that plant that is already built then build a brand new one in a small town way down south.
rtz you make a lot of sense since this project is indeed a long shot for NAC. Case in point, Honda took the old failed Peugeot-Guanzhou Auto plant down in Guangzhou, and got it up and running successfully in a short time. Finding the right location for a greenfield plant and getting it going is an awesome task for a fledgling like NAC.
akirachan 01-23-2007, 11:41 PM none.
MGBMAN72 03-12-2007, 10:22 AM I just read this on Motor Authority.com:
US built MGs on-track despite CEO bailing
Monday 12 March 2007
Oklahoma Global Motors, the American side of a joint-venture determined to manufacture MG cars in the US, will continue with its plans despite the resignation of its CEO. Automotive News reports that Duke Hale has quit from his post as CEO along with two other top managers, but key investor Marc Nuttle is confident that the project will go ahead as scheduled.
Oklahoma Global Motors has partnered with China’s Nanjing Auto to build the MG TF sports coupe using car bodies sourced from the UK with drivetrains manufactured in the US by Nanjing. Nuttle expects the final licensing agreements to be signed by the end of the month.
It’s thought the reasons for the management departure centers around the downsizing of the company’s original plans. Hale wanted MG to sell up to 100,000 units by the end of the decade, but the costs involved in meeting emissions and safety standards for the required additional models would have outweighed the benefits.
The partnership will instead produce only 20,000 cars in the US and another 20,000 in the UK over the next two to three years and expects to launch the brand in the US midway through next year. If successful, Nuttle expects to see the introduction of “three or four models and a hybrid car and 50 dealers at launch.”
MGBMAN72 03-12-2007, 10:31 AM I am glad that Hale is no longer in charge. I thought he was quite insensitive when he talked of the "Legacy Costs" that they were getting out of. As for production target changing from 100,000 to 20,000, I think it will be a wise move. They should be able to control quality of 20,000 a year easier than 100,000 as well as maintaining a bit of exclusivity that could help resale value. Only time will tell...
I am glad that Hale is no longer in charge. I thought he was quite insensitive when he talked of the "Legacy Costs" that they were getting out of. As for production target changing from 100,000 to 20,000, I think it will be a wise move. They should be able to control quality of 20,000 a year easier than 100,000 as well as maintaining a bit of exclusivity that could help resale value. Only time will tell...
welcome to CCF MGBMAN:cool:
BringIt 03-12-2007, 10:06 PM I can't wait for this car - I've been waiting for a weekend car since I sold my 944 Turbo and Miata...
MGBMAN72 04-02-2007, 06:22 PM MG Plans 40 U.S. Dealers, No Matter Where The Cars Are Built
Automotive News April 2nd, 2007 2:33 PM
Color us a little confused. Recent scuttlebutt out of MG, the British marque recently purchased by China’s Nanjing, is that the company’s planned facility in Ardmore, Oklahoma, has been ashcanned, something confirmed by an MG official recently on NPR. Why, then, is the company’s joint-venture partner in the States, Oklahoma Global Motors, telling Automotive News China that they’re still on the case? Perhaps the plans aren’t quite so dead after all.
In any case, regardless of where the cars are assembled, the plan is to have MG TFs hitting Stateside streets sometime next year, and the group expects to have a prototype coupe together by the end of 2007.
To that end, OGM is seeking to establish as many as 40 dealers in the U.S. right out of the box. Would-be dealers looking to apply for a franchise will likely be communicating with John English, the firm’s president (and former Lotus bigwig).
From Winding road.com
Windy 04-02-2007, 07:02 PM Thanks for posting all the USA news MGBMAN :)
They will get there in the end, somehow!
Trouble is a an OLD car, if sold cheap than may be ok. But there is very little room inside. Its for me and i an 12.8 stone and 5 foot 7". You think you can find a Yank who will fit?
Mega
Seamaster 04-03-2007, 05:32 PM I'm 6'4", 200lb, and fit in one just fine. Another thing the TF has always had over the MX5 and MR2. And that's before NAC-MG stretch it, as per the discovered prototype at Longbridge.
Windy 04-03-2007, 06:07 PM Trouble is a an OLD car
Mega
No Mega - The USA version will be a NEW car:
The machinery is up and running. MG Rover officially is back in production with new models for the first time since 1998, but with a “Made in China” sticker on the new sheetmetal.
The first cars off the new $362-million line in China are the MG TF two-seat convertible sports car (a modern copy of the popular original), and the MG7 series (a sedan based on the Rover 75 and MG ZT) in regular- and long-wheelbase form—all for the Chinese market.
The engines are Euro4 compliant in preparation for the European rollout later this year.
The Longbridge plant is gearing up to start assembly of right-hand-drive versions of the TF for the U.K. Tentatively Job One will be the end of May for sale in late August or early September.
At this point, Longbridge plans to build the TF convertible only, cranking out about 1500 of the mid-engine cars this year and 8000 or more in 2008, its first full year of production. Next year the car will find its way into other key European markets.
The U.K. plant does have the capability to add the MG7. Officially, it is not part of the immediate product plan, but cautious optimism pencils it in.
Additionally, the TF will undergo a change in about 18 months, at which point the addition of a coupe could be considered.
For those left panting in the U.S., the future is less clear.
The way things are shaping up, North America will be the last continent to get its hands on the Miata-like roadster.
How long we must wait is being determined in 11th-hour negotiations that continue between NAC and Oklahoma Global Motors (OGM), the company that wants to build a plant in Ardmore, OK.
Last summer, NAC created a stir with promises to build a plant in Ardmore and return the MG to the U.S. for the first time since 1980. Plans were to start with about 550 people building the TF coupe, slated to grace showrooms in 2008.
A new company was created—MG Motors North America Inc., based in Oklahoma—to oversee sales, marketing and distribution of the models.
But, legally, all that is in place is a letter of intent—a final deal has not been signed as the two sides haggle over details of the license agreement and production rights.
OGM is taking a buyer-beware stance, exercising prudence in ensuring the assets NAC bought from Rover Group are free from prior claims and other potentially messy issues that can arise in the wake of bankruptcy, explained Wes Stucky, president of the Ardmore Development Authority, who is anxious to see the project proceed.
Stucky said the mid-April deadline appears pretty firm—at which point the plant will be a go or dead in the water. He is hopeful the final details are being ironed out successfully.
The original plan was to start production at the new Oklahoma plant in early 2008, and have cars in showrooms that summer.
Stucky said that is an aggressive timeline, but “potentially doable.”
Should things fall apart, and a decision is made to source the TF for the U.S. from the U.K. (talk about alphabet soup), officials say it would take at least a year to homologate the car.
The good news: everyone recognizes the importance of the North American market, and where there’s a will, and money to be made, expect a way.
http://www.caranddriver.com/dailyautoinsider/12773/future-of-mg-in-the-us.html
MartinW 04-04-2007, 02:49 AM So the real problem with federalising a car for US sale is time? And one can short-cut that by building it in the US?
BigFatGuy 04-05-2007, 01:09 AM I really hope this works out. I'm hoping to get hired by MG when I graduate.
I'd love to buy a TF coupe too. :D
Windy 04-05-2007, 02:00 PM I really hope this works out. I'm hoping to get hired by MG when I graduate.
I'd love to buy a TF coupe too. :D
Welcome BigFatGuy,
Its always good to have someone local to post the local news and take some photos of the progress :D , I hope you will be visiting here regularly...
How long til you graduate?
BigFatGuy 04-06-2007, 04:36 PM Thanks Windy.
And just to clear things up, no I'm not a fat guy. I just think the handle is funny. :D
2 years until I graduate. Might be too late to get in on the ground floor, but I'm sure they'll continually need new people......
Yeah, as stuff gets built and progresses I'll try and get some pics and the local perspective.
:)
rinlv 05-18-2007, 08:35 PM does anyone have point of contact to get on the list for becoming a MG dealer in the US??? TIA
actual phone number would be nice..
Windy 05-19-2007, 07:11 AM Its a little old but you could try some of the numbers listed here: http://www.okcchamber.com/page.asp?atomid=1614
MG NAnjing hasnt released any PR lately of their OKLAHOMA plant
rinlv 05-19-2007, 01:51 PM Thanks
mgrovernut 05-20-2007, 06:16 PM I think the planned launch for MG in the USA is late 2008.
chinacartimes 05-23-2007, 02:56 AM You have to factor in import taxes, exports costs, and most importantly branding - both Roewe and MG are advertising that they are 'British' cars and not Chinese. Also, material resources for car production are pretty much the same price all over the world, especially if you're going for quality stuff.
Americans would lap up something that is 'British' - refined, luxurious, elegant etc - in short, the British stereotype is easier to sell than the Chinese stereotype.
Plus Im sure MG are getting huge tax incentives for investing in OK, bringing USD investment back to America and setting a trend for other Chinese companies investing in USA, rather than the other way around.
Its a good thing for both parties.
mgrovernut 05-23-2007, 02:35 PM It's interesting that NAC is persuing a truly global vision with possible new factories in the US, UK, China, Vietnam and Russia. They clearly want to become a serious player very quickly.
RCtennis3811 07-23-2007, 05:21 AM If the price was low, safety features abundant, and design very British, I would definitely stop in for a look at my local MG-Roewe dealer!
BigFatGuy 02-21-2008, 01:21 PM Hmmmm.....
A year and a half later, I can't find any new info on this. :(
dragin 02-21-2008, 04:18 PM This ambitious project of flying CKD's in from China on a 747 transport plane seems to be dead in the water.
SAIC knows that it is not ready for such a serious step forward at this point in time.
fasteronline 03-06-2008, 04:32 AM Chinese car makers have started to explore other avenues to prove their worth in this business.
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