Rus News Journal

English Rover will collect on - kitajski

the British automobile company MG Rover declared creation of an alliance with the Chinese manufacturer Brilliance China Automotiv. The alliance will be engaged in manufacture of cars which will sell both in the markets of Asia, and in Europe.

company Brilliance is known as the manufacturer of minibuses. It has started to let out cars only this year. In Europe sales of the debut model which has received name Zhonghua, will begin already in the end of March. Capacities of the Chinese company involved for a long time the European motor-car manufacturers. Last year with Brilliance China Automotiv carried on BMW negotiations. The Chinese accessories were supposed to be used, in particular, on assembly manufacture of the German company in Kaliningrad.
however to agree about real cooperation with Chineses it was possible only MG Rover. According to John Tauersa (John Towers), the chairman of board of directors of the British company, alliance creation - the key factor for company stabilisation in the market. after Rover has been redeemed at BMW, the new partner is necessary for the future development of the company - mister Tauers has explained to journalists.
Within the limits of alliance Rover plans to realise the plans on creation of the new car of a small class which would be in demand in the markets of China and Asia. In turn, Brilliance can let out cars from a lineup of the western partner. MG Rover also will help the partner to equip the automobile factory, which building Brilliance of the beginnings on severo - the east of China. Labour cost in China favourably differs from its cost on British isles, and the Chinese partners fairly believe that the alliance can increase without considerable investments volume of output roverov . Under treaty provisions MG Rover and Brilliance fifty-fifty will divide costs for working out of the new car which by 2005 will replace model Rover 25. This project assumes equal investments of partners - on $420 thousand According to chief executive Brilliance Bryan Sana (Brian Sun), incomes of escalating of volume of output will block costs on development .
Rover and Brilliance have already divided the markets. The Chinese company will deliver cars Rover to China, the countries of Asia and in the majority of the countries of Africa, and MG Rover exclusive rights on the Japanese, South African and European markets will depart. In the USA the companies have agreed to operate in common.
according to analysts, creation of this alliance will allow Rover to survive not simply (after divorce from BMW of a position of this company in the market have strongly reeled), but also considerably to improve financial indicators. The Chinese automobile market is considered one of the most fast-growing in the world, and experts believe that in three years in this country annually will be on sale more than 1,5 million cars.

IVAN - ZAMOROV