MG Rover have just signed a full strategic agreement with SAIC (Shanghai Automotive Industry Corporation) which will allow for the joint funding of several new cars pending Chinese government approval. SAIC is one of the largest Chinese manufacturer producing cars under license for GM and VW with little indigenous output.
Previously MGR only had the resources to develop RD/X60 as a hatchback alone. The SAIC deal includes the RD/X60 as a saloon and an MPV version and other 'variants'.
The deal is a major coup as it is a full collabourative agreement unlike the royalty GM and VW based deals. This deal allows MGR to manufacture RD/X60 at Longbridge and SAIC to manufacture RD/X60 in China. Both manufacturers are to share the economies of scale in component costs and also SAIC is eager to fund other new MGR models.
The full story is here
news.ft.com/servlet/ContentServer?pagename=FT.com/...0
As an aside, it's no secret that TATA have also been hiring production staff for RD/X60 for an Indian version of the same car, an announcement was to be made in February but this was delayed and also pulled from the TATA corporate website.
SAIC will have a say in the finalised design of RD/X60.
So it looks like RD/X60 has tapped into the world's largest car markets.
All we need know is to see the car in the metal.
MGR's future looks a lot brighter.
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Well, let's hope this works this time - and hopefully gives them some money to sort the K-Series out, too !
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Let's hope it works out for them this time. The only caveat is "pending Chinese Goverment approval". Let's hope that happens quickly.
Now all they need to do with RD60 is make sure its a decent car.... ;)
SIAC are a pretty large and ambitious company - if it works out well with RD60 for the two parties it could turn out to be the start of something pretty big for MGR.
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I think any car maker offering to help the Chinese develop an indigenous car industry that can compete with the world is going to get government approval.
I don't understand how no other firms thought of it before MGR, the VW and GM deals with SAIC were restrictive covenant.
The CB deal did kind of work out for MGR, they got to keep the $300m they'd invested in MGR as CB were in breach of contract.
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One suspects the VW and GM deals were because those companies wanted to retain there owm rights more closely... whereas, for MG Rover, they had less to loose & much more to gain !
Hopefully the RD/X60 will be a good car, if only because it is, in effect, a down-sized R75 - MG Rover had to go that route since it didn't have the resources to produce it from scratch.
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Well, let's hope this works this time - and hopefully gives them some money to sort the K-Series out, too !
Arnold. There is nothing wrong with the K-series ;-))) www.honestjohn.co.uk/forum/post/index.htm?f=2&t=22...0
Repeat. There is nothing wrong, much...
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I think arnold2 is spot on as to why VW etc. have not done the same. To be frank, MGR are somewhat more desperate than VW for inward investment and VW have a lot more technology to offer.
Its not clear how much of RD60 is based on the 75. The problem is with basing it on the 75 is that will it actually be any cheaper to produce than a 75? This seems to be the problem MGR have been wrestling with.
It's certainly good news that they will now be able to deliver a full range of models from RD60. Let's hope they get the development finished quickly (but not so quickly the 1st years production are full of faults).
What are MGR doing on the diesel front (a big weakness at the moment)? Wasn't there some sort of Indian co-developent deal also in the works by Powertrain for a new common rail diesel?
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I beleive the idea is a Common-Rail version of the L-Series diesel engine - presumably the BMW one costs licensing money ....
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Its not clear how much of RD60 is based on the 75. The problem is with basing it on the 75 is that will it actually be any cheaper to produce than a 75? This seems to be the problem MGR have been wrestling with.
Hopefully the economies of scale will not only make the RD60 a viable product, but will filter back through to 75 production.
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Any one got sny more info about a new diesel?
a 2.0 litre TD may prove fine in the 45 and 75 - but way to much in 25? I understand the TATA indica's diesel which is a peugeot unit was not suitable due to it failing Euro VI compliance, however - is this still not a possibility?
Also, the new range of X-rated MG models will bring a new level of respect to a range which is second to none for its value.
While a mechanic recently pointed out to me the vast improvements rover made on the 45 compared to the 400, he still said reliability was far from perfect. Lets just hope the 45 things are reliable, if that proves the case then i will be happy to buy a rover. Also, he has been told the new 25 face-lift car tweaks are alot bigger than rover have let on to.
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Any one got sny more info about a new diesel? a 2.0 litre TD may prove fine in the 45 and 75 - but way to much in 25? I understand the TATA indica's diesel which is a peugeot unit was not suitable due to it failing Euro VI compliance, however - is this still not a possibility?
Bit OT here...
I'm not sure the Indicas diesel engine is a Peugeot unit, some of their utility vehicles used the ancient Peugeot 2.0 XD engine from the 404/504, but at 1405cc this engine doesnt seem to match any Peugeot unit.
(Just as a sidenote, looking at the TATA website, it quotes the diesel engine as having 53.5PS @ 5500Rpm, now these revs seems a little high to me...)
Ross
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The 25 apparently has some chassis tweaks but the 45 has apparently been left alone in that department.
As far as the diesel is concerned the BMW unit seems to be quite restricted so is not a long term option. BMW no doubt charge heavily for it and they are restricted as to which cars they can put it in and are also one development cycle behind the versions going into BMW's. (i.e. The Rover unit only went to 130PS after BMW upped it in the 3-series to 150PS).
What MGR need is a new diesel of their own or co-developed with a partner they have control over development, costs and use of.
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BMW are not exactly playing ball with the supply of diesel engines to MGR either. They are refusing to offer to supply more as the 75 CDTi is widely known to be a very good diesel car(having won several diesel car awards) and demand for it have increased.
This is also another motivator for MGR developing their own diesel. It looks as if the PSA deal to supply their new diesel have fallen through.
Personally, if it was a good fit, I'd rather see the 2.4 JTD from Fiat go into the 75 in the short term.
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