[Real_I_Hate_China]

http://www.automotiveworld.com/WVMA/content.asp?contentid=60254

Europe: Roewe vehicles to be Ssangyong-branded, report claims
By Automotive World staff writer (DI)
30 April, 2007
Source: Automotive World

SAIC is expected to commence sales of Roewe models in Europe in 2008 through its Ssangyong subsidiary's dealer network, and under the Ssangyong brand, Automotive News Europe has reported.

So MG7 Vs Ssangyong 75, let the battle begin...

 

[mgrovernut]

We will see. Although I do wonder why SAIC are currently touring around Nanjing's MG factory's? Personally I think they will merge or even form an Alliance.

SAIC have some real problems if they try and sell the Roewe 750 over here. The press are already siding with MG in the UK. They have made heavy note of the fact that MG's won't be blowing head gaskets because Lotus have redesigned the engine. They also point out that the engines are Euro 4 compliant and have done well in Co2 test and that the quality seems high. It has done VERY well in the NCAP's and they are even throwing in a 5 year warranty for just 14K. That in UK terms makes it a steal and the fact that they will also make them in here appeals to the patriotic vote. The silly Zhongua thing sells over here for more than the MG 7, is half as good and has no pedigree.

SAIC could sell the Roewe 450 over here, without any problem as a Ssangyong. But frankly I couldn't care less really as I'm not interested in a brand with no history and dodgy resale values. The Chinese and Brits have a good thing going here and will build the best cars in the world by working together like this, MG is back, yeah baby yeah!

 

[Real_I_Hate_China]

It has done VERY well in the NCAP's and they are even throwing in a 5 year warranty for just 14K.

You don't seem to understand that that's just the Chinese market price and the UK pricing will be double that, after taxes and import tariff.

That in UK terms makes it a steal and the fact that they will also make them in here appeals to the patriotic vote.

MG7 won't be made in UK.

 

[mgrovernut]

But the 14K is what it will retail as in the UK. Not China. So that should include the import taxes as I understand it. Besides, unlike Ssangyong/ Roewe motor com, MG have a UK car plant capable of making the MG 7 from Chinese and British car parts. So essentially, just like the sucessfull Japanese NAC will go around the trade barriers.

Roewe is too backward to think of this idea. That's just one more reason they screwed up in failing to buy the MGR assets.

 

[Real_I_Hate_China]

But the 14K is what it will retail as in the UK. Not China. So that should include the import taxes as I understand it.

You understood wrong, just like the rest of MG business, including IP rights.

Besides, unlike Ssangyong/ Roewe motor com, MG have a UK car plant capable of making the MG 7 from Chinese and British car parts.

But Nanjing won't, they already moved the line to China and kept the TF line as a token gesture of good wills.

So essentially, just like the sucessfull Japanese NAC will go around the trade barriers.

Transplanting at high cost countries works only when your vehicles/worker efficiency runs at 100~150 vehicles/worker(Like Toyota or Hyundai lines). MG Rover's efficiency was 20 vehicles/worker, and Nanjing's figure is even lower.
MG7 cannot be produced in UK at a competitive price.

 

[Puppetland]

MG is back, yeah baby yeah!

NAC have done an impressive job with the construction of their Chinese MG plant - but the really hard work starts now.

How they are going to get British buyers interested in what are, essentially, old cars, is going to be extremely interesting.

 

[Windy]

But Nanjing won't, they already moved the MG-7 line to China and kept the TF line as a token gesture of good wills.

You have got that the wrong way around!

The MG ZT line is still in the UK and quite capable of making MG-7.

The TF line was shipped to China, and then replaced by a new one.

The Chinese MG-7s are being built on the old MG ZR and MG ZS lines.

There are no import taxes if you assemble the cars in the UK, that is one reason for keeping the assembly lines in the UK.

 

[mgrovernut]

Windy is spot on as usual. Real_I_hate_China to be fair to you the whole MG Rover thing is very messy to understand if you have'nt followed it in as much depth as some.

MG Rover was never as inefficient as some may have you believe. The problem was they had too many staff working outside the production lines to support the business and too many people with 'job's for life'. NAC has moved most back office work to China and the administrators stopped jobs for life. So really the production line efficiency will now probably end up looking very good, in fact it wouldn't surprise me if it becomes one of the most efficient plants in Europe as NAC have re-organised the UK site.

 

[mgrovernut]

NAC have done an impressive job with the construction of their Chinese MG plant - but the really hard work starts now.

How they are going to get British buyers interested in what are, essentially, old cars, is going to be extremely interesting.

The same way Daewoo did with even older reheated Astra's. All you do is cut the price, throw in more toys and add a 5 year warranty. Don't forget that they aren't aiming for massive sales on day one, just a toe in the door. In a couple of years time when the new metal comes on line thats the point at which MG will launch off the springboard and look for much bigger sales...

Not sure what Roewe is trying to achieve though. Everyone in the UK will laugh at them trying to make fake MG's and sell them for the same price or more. What planet are they on?

 

[phaeton]

Interesting news I wonder if this will be applied outside of UK ??

Perhaps Australian market too............