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rover_800
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It just occurred to me that if MG-R have already spent a considerable amount of it's own money designing RD/X60 does it not make sense that SAIC should at least match what PVH/MG-R have spent? In which case shouldn't they split the proprietary rights 50/50? MG-R own the MG name, the rights via license to the Rover name, The K-Series engines and any improvements in the pipeline. In other words intellectual property rights are owned soley by PVH/MG-R. The way I see it for a the right price SAIC get to own 50% of these designs. If SAIC plan to build more units than MG-R that is fine, then they should pay for the facilities in China to produce them. Likewise MG-R should pay for the neccessary upgrades at Longbridge to bring their version of RD/X60 to production.

Does this only make sense to me? Unless SAIC are paying for everything why should they get a bigger piece of the pie. What about all the hard work and planning on MG-R's part to design (I assume a very compelling product) RDX/60?? Do they get nothing for these efforts? After all in most cases that is the most valuable asset...The IDEA itself! That is why people apply for Patents.

If SAIC pay for half they still have the right to produce these designs in China, (a potentially massive market for this car) and MG-R have the rights to build them for Japan, North, South, and Central America, Europe, Australia etc.

Okay any thoughts. I believe PVH/MG-R are not over a barrel the way most in the press assume. I believe they are actually holding a few trump cards, and that Perhaps they are playing hardball with the Chinese, and not the other way around. In which case I say great. Negotiate from a position of strength as The Chinese will respect this. They will not respect Weakness!
 

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sorry mate the desl is done and although it is nowhere near as much as 50% I could say half as much but may get told off. In any case the deal will save MGR and safe guard 0000s of jobs so its a good thing and the chinese have the most important asset of all hard cash. the new stuff the money will provide is stunning and will start this year
 

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other_rover
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There seems to be a hell of a lot going on that we don't know about. To be honest I just wish they would announce in a joint statement where they have got to. All this speculation does MGR no good at all!
 

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MGROVERnut said:
There seems to be a hell of a lot going on that we don't know about. To be honest I just wish they would announce in a joint statement where they have got to. All this speculation does MGR no good at all!
Won't be long :hyper:
 

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other_manufacturer
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Could the JV (The names designs etc) actually be a 50/50% Split?
It could be. And monekys could fly out of my ****...
MG-Rover ARE over a barrel. To deny it is fantasy.

MGR will be left in the junior position IMO.
 

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Interesting thought, but I think it somewhat unlikely.

Shanghai Automotive Industry Corporation know that MG-Rover is entering their hour of need, and as such have the upper hand by far in any negotiations. No matter what the manufacturing and design expertise of a company, they cannot make anything if they cannot afford it, and this is where MGR is heading now.

I doubt the immediate survival chances of MGR are as bad as the press or Tony Blair like to think, but either way I cannot see how they can complete RD/X60 design and modify Longbridge to build the car without outside financial help, and this is why MGR so badly needs SAIC.
 

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SFulcher said:
Interesting thought, but I think it somewhat unlikely.

Shanghai Automotive Industry Corporation know that MG-Rover is entering their hour of need, and as such have the upper hand by far in any negotiations. No matter what the manufacturing and design expertise of a company, they cannot make anything if they cannot afford it, and this is where MGR is heading now.

I doubt the immediate survival chances of MGR are as bad as the press or Tony Blair like to think, but either way I cannot see how they can complete RD/X60 design and modify Longbridge to build the car without outside financial help, and this is why MGR so badly needs SAIC.
True, but if SAIC ***** about and MGR do go in receivership (don't think they will, as I suspect much of the press is overhyped as you do), then the receivers would be obliged to sell to the highest bidder, which could be anyone in the market for a nearly ready for market mid size car, and whatever else that hasn't been paid for by SAIC yet. The main competition would be from China, so SAIC may have to pay more than currently agreed (assuming they haven't bought the rights to RDX60 yet?)
UNLESS, something has just occurred to me - what if the intention is to go into receivership, so that SAIC can buy the assets/rights etc, without any liabilities? Is this possible/legal etc?
 

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We don't know for sure WHAT the equity split will be on the JV, so, yes, it could be 50/50 (though this is unlikely). However, even if MGR have only a 20% stake in the JV, they might have much greater power over the IP than SAIC (qwho might be restricted).


We simply don't know what's what, and whoever said speculating was fun obviously hadn't encountered this forum.

:minxy:
 

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Stephen K. Hone said:
It just occurred to me that if MG-R have already spent a considerable amount of it's own money designing RD/X60 does it not make sense that SAIC should at least match what PVH/MG-R have spent? In which case shouldn't they split the proprietary rights 50/50? MG-R own the MG name, the rights via license to the Rover name, The K-Series engines and any improvements in the pipeline. In other words intellectual property rights are owned soley by PVH/MG-R. The way I see it for a the right price SAIC get to own 50% of these designs. If SAIC plan to build more units than MG-R that is fine, then they should pay for the facilities in China to produce them. Likewise MG-R should pay for the neccessary upgrades at Longbridge to bring their version of RD/X60 to production.

Does this only make sense to me? Unless SAIC are paying for everything why should they get a bigger piece of the pie. What about all the hard work and planning on MG-R's part to design (I assume a very compelling product) RDX/60?? Do they get nothing for these efforts? After all in most cases that is the most valuable asset...The IDEA itself! That is why people apply for Patents.

If SAIC pay for half they still have the right to produce these designs in China, (a potentially massive market for this car) and MG-R have the rights to build them for Japan, North, South, and Central America, Europe, Australia etc.

Okay any thoughts. I believe PVH/MG-R are not over a barrel the way most in the press assume. I believe they are actually holding a few trump cards, and that Perhaps they are playing hardball with the Chinese, and not the other way around. In which case I say great. Negotiate from a position of strength as The Chinese will respect this. They will not respect Weakness!
I wish this were true Stephen. At this point MGR has no trump cards. It doesn't matter what they have spent on developing the cars - the only thing that matters is what future value they can get the Chinese to pay for. If the deal comes apart, the Chinese have lots of options - MGR has few. If the Chinese pull out then faith in MGR's future will plummet and sales along with it. The company will go into receivership and the Chinese could step back in and pick up the assets for peanuts. You can be quite sure that discussions around that subject are going on in China right now.
 
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