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This is so obvious.

Everybody can see that there are too many manufacturers in China.

Too many companies is probably good for the customers in the short term but it'll keep profits and most likely quality low and after all the fighting, the weakened but best of these companies will be taken over by much profitable and not necessarily more efficient foreign companies. Companies led by deluded businessmen with strong connections to bankers such as Nanjing Auto should be closed down right away.

The solution isn't simple. The car manufacturers cannot be all be closed even if they're not the most efficient. The government should carefully engineer break ups and mergers of the companies. Some may need to be reinvented as transmission and engine specialists and others as full vehicle manufacturers, for example.

After this first stage, the remaining companies should be encourage to team up and develop common platforms (Chassis, engine and transmission) just like Mazda, Ford and Volvo have done for the S40, 3 & Focus or Toyota, Peugeot & Citroen.

SAIC currently have the best technology. It's 2.0L and 2.7L Turbo Diesels designs can be bought from Ssangyong to power medium to large cars. It's 2.5L V6 or 1.8L K-Series from Rover that had many quality issues can be manufactured more strictly and could power sportier and smaller cars. What SAIC needs is a 8-speed double clutch gear box.

These engines can be manufactured at a common powerplant factory co-owned by FAW, Dongfeng, Brilliance and engines sold with a 10% markup mainly to cover admin costs and ensure a small profit.
 

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MG as a brand isn't worth much outside of the UK. The old MGs were not known for their reliability and MG didn't see a profit in the US market. When was the last time MG was distributed in the US? What is left of MG's dealership network? They'll have to rebuilt their network and they'll have to give heavy incentives for people to set up dealerships to sell a car that almost 10 years ago wasn't selling well anyway, were known for their erratic quality and of the 3 people I know, who bought MGs just before they stopped selling them have sold them for a Honda Accord Euro, a Golf GTI and a Lexus IS250 because of mechanical and quality problems.

If you think highly about MG... let me guess, you're into your mid 50s, british, drink tea and play cricket!
 

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Martin W... I like the points you raised and among all the posts, yours are the most realistic and factual.

Regarding the Mini... the weaknesses were that the original design was unsellable. Actually, the new mini has almost nothing to do with the old one but the strengths were the might and reputation of BMW and that the Mini was a world wide success in its time. It incorporated many technological advances such as traverse mounted engine.

MGs strengths are its small but hardcore followers, its still sexy design, its technically still advanced VVC engine. In their current state, MGs do not need much redesigning but they need to be manufactured to Toyota Japan(Nagoya?) standards (parts purchasing, robots maintenance, quality control etc. etc.), marketed and distributed astutely and that's something SAIC was better placed to do than Nanjing, in my humble opinion.

Anyway... we'll see in a couple of years how this all unfolds.

MGRoverNut... I know. I'm a shit stirrer! Sorry but I can't help it.

I think that Chinese Car companies would have a better chance if they were to concentrate on their domestic markets first. Many European manufs have bled trying to break into the US market e.g. Peugeot, Citroen, Fiat etc. and these were succesful, seasoned car makers. In China, however, Roewe or Rover, Morris Garrage or Modern Gentleman doesn't speak as strongly as design, price, friend recommendations etc.
 
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