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I don't know if this has been posted before but .... FYI ...

Manufacturer talks to retail network over contractual issues as negotiations over Chinese alliance approach conclusion

By cliff caswellx
MG ROVER RETAILERS are preparing to transfer their dealer agreements to a joint venture firm set up by the manufacturer and its prospective Chinese partner Shanghai Automotive Industry Corporation.
Lawyers representing the retail network and the Longbridge car maker are meeting to
discuss the legal formalities for dealers this week.
The move is a clear indication that negotiations on the proposed strategic alliance between MG Rover and SAIC will be concluded soon.
The news was broken to dealers in a letter signed by Kevin Howe, chief executive of MG Rover and his SAIC counterpart Zhao Feng Gao.
The letter states: “We will shortly be holding discussions with your representatives on the MG Rover Franchise Board about the legal process required to allow the transfer of dealer agreements to the new joint venture.
“We need to deal with this legal process very quickly to ensure everything is in place for the commencement of trading.
“We trust that we can look to your total support throughout this all important period leading up to the establishment of the joint venture.”
Rod Ramsay, managing director of sales and marketing at MG Rover, stressed that the detail of dealer agreements would not be changed.
He told Motor Trader: “The only thing that will change is the name of the contracting party — all other aspects, such as minimum standards, will stay the same.
Ramsay said negotiations with Shanghai Automotive were entering their final stages. “Certainly we would not be talking about moving forward on dealer agreements unless we were 100 per cent confident.”
It is speculated that two joint venture agreements may be set up, covering European and Far East distribution.
It was confirmed that another Chinese company, Nanjing Automotive, would hold
a small stake in the new joint venture
As well as the use of the MG and Rover brands the proposed alliance will have the
use of the worldwide dealer network as
well as intellectual property rights.
An immediate priority will be the freshening up of the MG Rover product range. Ramsay revealed that there would be new upper-medium and lower-medium cars for both brands plus a new executive vehicle aimed mainly at export markets.
He brushed off press reports that the level of investment promised for MG Rover would be considerably less than the £1bn widely speculated. He also said there would be manufacturing at both Longbridge and in China with the aim of producing new models by 2009. “If anyone can do that for less than £1bn, I’d like to hear,” Ramsay added.
MG Rover dealer council chairman Richard Cort said: “The Shanghai Automotive deal
is not a panacea but does guarantee the future.”


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53,503 Posts
Yep, a few threads about this several weeks ago. Probably nearly a month now if you wish to go back and see them.
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