MG Owner Plans US Factory

[mahatmakanejeeves]

No, not someone who owns an MG.

Longbridge Fears as MG Owner Plans US Factory

Mark Milner, industrial editor
Wednesday July 12, 2006
The Guardian

The Transport & General Workers Union is calling for urgent talks with Nanjing Automotive to discover the impact of the Chinese carmaker's decision to open a plant in the US on its plans to restart car manufacturing at the former MG Rover site at Longbridge.

The union expressed "surprise and concern" at the news that Nanjing is planning to assemble cars in the US by building a plant in Oklahoma. The plant would assemble MG-branded cars.
....

Nanjing confirmed today it had signed a letter of intent with investors to set up the North American MG Motor Company in Oklahoma. It said it was discussing setting up a vehicle and CKD export base in China, an MG car assembly plant in the US and "the implementation of the proposed business plan in MG's home base in Longbridge". CKD cars are those in which the parts are made in one place with final assembly taking place elsewhere. Nanjing did not identify the investors to whom it is talking.
....

The Oklahoma Department of Commerce said yesterday the US project would create about 500 jobs. It is understood that the plant would assemble cars from parts shipped from China. According to the US magazine Automotive News the plant would build between 12,000 and 16,000 cars a year with just over half going to the US and the rest to Europe.

[Ian David]

1. The Chinese are sending jobs HERE? n/t

[justice1]

2. Smart thinking on the part of the Chinese.

It will help curb criticism of the Chinese taking our jobs. Second, Americans are more apt to purchase cars made in the U.S., especially if they have a reputation for being dependable.

I've seen estimates that the quality of Chinese vehicles will be on par with Toyota, in about 10 years.