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MGs to Move to Kaliningrad

http://www.kommersant.com/p764988/r_529/Car_Industry_Avtotor_Kaliningrad/

Russia’s Avtotor plant is in talks with Chinese Nanjing Automobile to set up an assembly line for MG cars in Kaliningrad in what could be Avtotor’s second Chinese export project. The car maker has recently announced that its joint plant with China’s Chery would be exporting half of its production to Europe.


A high-placed source of Kommersant in the car industry reported that a delegation of Nanjing Automobile and its president had visited Avtotor’s facilities two weeks earlier and signed a memorandum, declaring intentions to set up a joint production in Kaliningrad. Details of the projects are to be settled by this fall when the business plan and market research are ready.

Avtotor’s Executive Director Alexander Sorokin confirmed the reports, saying that “Nanjing Automobile is extremely interest in exporting MGs to Europe.” The official declined to give further comment.

A Kommersant source familiar with the situation said that the MG assembly at Avtotor would amount to at least 25,000 cars which would include MG7 hardtops. The project would see the CKD assembly.

British MG Rover, which owned MG and Rover trade marks, went bankrupt in 2005. Nanjing Automobile bought the company’s production assets for $86 million, keeping the right to use the MG brand and selling the Rover brand to Ford.

The MG deal is not the first Chinese project of Avtotor. The Russian car maker earlier announced that its joint plant with China’s Chery would be exporting half of its production to Europe.
 

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So long as it doesnt put Longbridge in doubt its good news.
Thats my only concern, it all seems that Longbridge maybe being used a marketing smoke screen to the UK. I think there could be quite a bit of mis-direction going on. Maybe the cars built at Avtotor will be shipped to Longbridge and the finishing touches only applied there.

Who knows its all speculation but with my love affair with Russia and its history it would be a great reason to buy an MG from there.
 

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Thats my only concern, it all seems that Longbridge maybe being used a marketing smoke screen to the UK. I think there could be quite a bit of mis-direction going on. Maybe the cars built at Avtotor will be shipped to Longbridge and the finishing touches only applied there.

Who knows its all speculation but with my love affair with Russia and its history it would be a great reason to buy an MG from there.
But you dont need something the size of LB on a 33 year lease to do that...they could have taken a smaller site on a shorter lease and given themselves more flexibility if that was the plan.
 

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To be honest I doubt this will affect LB much; the TF is here and given the size of the investment, it'll be joined by something else at some stage. I can see LB becoming a UK 'hub' for imported MGs in the same way that BMWs are always going in and out of Cowley.
 

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Well they do know NAC very well already - given that Avtotor already assembles NAC's Yuejin light trucks in Russia.

On top of that Avtotor build BMW 3 series cars so they must know how to build them properly.

The photos on their website make their factory look clean and modern.
 

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Rather than the plant providing kit for assembly, it will recieve kit from China - and perhaps the UK too eventually. There was a little concern when I read it, but this really is the other side of Europe and as pointed out, LB is still sizable and on a long lease. The plant is joint-owned by Chery who of course are in cahoots with NAC and FIAT. Maybe the deal involves exporting Chery's and MG's to Euorpe through a shared dealership network?
 
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