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Discussion Starter · #1 ·
http://www.expressandstar.co.uk/2007/03/23/chinese-mg-firm-seeks-£200m/

Chinese MG firm seeks £200m

Nanjing Auto, the Chinese car firm that bought MG Rover, is asking its Government for a loan of up to £200 million after reports that its banks are losing confidence.

The company has launched Nanjing GB to start producing MG TF Roadsters at Longbridge later this year and also aims to launch a coupe version in the US.

Nanjing bought the collapsed MG Rover business for £53 million in 2005 and has ambitious plans to build up to 200,000 MG vehicles, 250,000 engines and 100,000 gearboxes in Nanjing, investing around £230 million over the next five years.

But reports in the Chinese media claim the plan has attracted the backing of only one bank, the Import and Export Bank of China, which has offered a loan of just £33 million.

An insider was quoted as saying: “Banks apparently lost confidence in the company because several of its subsidiaries are in the red.”

Now Nanjing company president Wang Haoliang has asked the Chinese National People’s Congress (NPC) to provide government support for a loan of £130 million to £200 million to support its car business.

But in the UK Nanjing’s spokesman, Kim Custer, said today it was “business as usual”. “The company has ambitious plans for expansion both in China and outside China and it is quite normal that it should seek to borrow money from time to time,” he said.
 

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Discussion Starter · #4 ·
http://uk.reuters.com/article/domesticNews/idUKL2660962620070326

Car maker Nanjing may sell up to 50 pct stake
Mon Mar 26, 2007 2:25PM BST
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By Fang Yan

NANJING (Reuters) - Nanjing MG Motor may sell as much as a 50 percent stake to outside investors to help fund its expansion, its general manager said on Monday.

Nanjing MG is a unit of Nanjing Automobile Group, a medium-sized player based in eastern China that surprised the motoring world when it took over MG Rover in 2005 after the British carmaker collapsed under debts of 1.4 billion pounds, outbidding China's biggest car maker, SAIC Motor, to obtain rights to the MG sports car brand.
Photo

The company will roll out two mid-ranged MG 7 series saloons and an MG TF sports car on Tuesday, priced at between 180,000 yuan and 400,000 yuan (11,800 pounds to 26,300 pounds), Zhang Xin told Reuters in an interview.

It will need 2 billion to 3 billion yuan to increase capacity in the next several years, he added.

"We have been in talks with several potential partners, including funds, in North America and Europe and could sell as much as 50 percent," Zhang said.

The company also hopes to sell 200,000 vehicles in five years' time, he added.

Nanjing Auto is one of China's oldest vehicle makers, beginning life as a military garage in 1947. Its first attempt at vehicle production was a light lorry called the "Yuejin" or "Leap Forward", a vehicle still seen on Chinese roads today.

It has faced financial difficulties since the late 1990s as domestic rivals secured alliances with foreign firms, such as Ford Motor, BMW and Honda Motor, and chipped away at its market share, analysts have said.
 

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That would be an amaizing bargan but I think NAC-MG would be wanting to make a very big profit - I guess at least 1000% over the 2 years!
 

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You see you got to understand what's what here. IF MG was cheap, than built its market like Skoda did fine, but NO!

No, they going to try to sell "Old" models at market prices by offering a bit of extra trim + a good ish Warrenty.

That simply will not work!
Mega
 

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SAIC had to go cap in hand to the markets in exactly the same way.

These guys have hugely aggressive expansion plans. And that requires INVESTMENT.

Capitalism 101, gents.
 

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SAIC is the most profitable Chinese company in last two decades, they could get lots of easy money from stock market and banks if really need. NAC is another story, whole NAC sell less than 2000 cars last month, so call for government is more easier.
 

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Selling Old Tat at Moden car prices is a No No!
Yes the ZT was a good car, but NO WAY they can mix it with the market norms!

As for TF mixing with MX5................at the same cash.......for Gods sake!
Mega
 

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Mega, as far as I know the TF will start at about £11,500. I thought the MX5 started nearer £18,000?

The ZT will start at 16K, which in my view is a bargain.

Also bear in mind the Nanjing isn't aiming to sell big numbers. They are simply looking for a foothold and a start. In 3 years or so we should see new metal from Austin and MG. That's when the real battle begins. China is the main focus at present.
 

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mgrovernut said:
Mega, as far as I know the TF will start at about £11,500. I thought the MX5 started nearer £18,000?
mgrovenut, u have to know that Mazda is a much better car, and even with the extra price it is still a bargain. Do u know how much trouble the British MG wer, trims falling off and dealers not being supported from the manufacturer. And lets not forget the toyota MR2, mid engine like the MGTF and a solid car in every respect:cool:
 
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