Selling your classic car? It's FREE to list your car on Honest John Classics | No thanks

MG Rover 'in Fiat talks'

28 March 2001

Flagship UK car maker MG Rover is reported to be in talks to fit Fiat engines to future models.

MG Rover, who declined to comment on the reports, nonetheless said that "as a manufacturer of 200,000 cars a year, it would be surprising if we were not approached by the world's top five engine producers". MG Rover is currently continuing negotiations with its former owner BMW over the purchase of the Midland Powertrain plant, which provides the Longbridge-based car maker with petrol systems.

And the firm in February revealed it was buying V8 engines from an as yet unnamed source for the top-of-the range ZT model, one of a series of sports cars which will hit showrooms this autumn.

Global engine shortage

MG Rover chief executive Kevin Howe, was contacted by one manufacturer within a week of the car maker, then called Rover, being purchased from BMW in a high-profile deal last May. The Financial Times report of talks with Fiat comes against a backdrop of a worldwide shortage of diesel engines, which MG Rover currently sources from BMW and Land Rover, which is now owned by Ford.

Land Rover last month blamed output cuts prompted by a shortage of diesel systems for a decision to cut 200 jobs.

Leading supplier

MG Rover has for months been in talks with BMW chiefs over the purchase of Midland Powertrain, from which it buys about 150,000 engines a year. The plant, which BMW acquired with the purchase of Rover, also supplies Land Rover and Lotus.

"We would like to buy it, but at the right price," the MG Rover spokesman said.

More news from the archive

Mon, 21 Aug 2000
Firms in Coventry and Warwickshire in the Rover supply chain can apply for a slice of an extra £7 million aid announced by the government....
Wed, 04 Oct 2000
BY ANTONY HOPKER More than 40 years of classic motoring history have ended today with the last Rover-built Mini coming off the production...
Thu, 26 Oct 2000
John Towers, who led the Phoenix consortium bid to take over Rover Group last year, is a veteran of the car industry. Mr Towers,...
Tue, 30 Jan 2001
MG Rover has unveiled four new sportier models as its new owners begin the long process of getting the loss making car maker back on...
Tue, 27 Feb 2001
MG Rover made a return to the world stage in Geneva after a notable absence form the Birmingham motor show. The Rover team had worked...
Tue, 19 Jun 2001
MG Rover, the loss-making UK car manufacturer, has bought the US-Italian sports car maker Qvale Automotive. The company, famous for...
Sun, 01 Jul 2001
A Former engineer is furious at BMW’s claims that Rover had no involvement in the New Mini. It was, he claims, a very British affair....
Fri, 07 Sep 2001
Lord Simpson's sacking from the post of chief executive of Marconi follows one of the most catastrophic declines in UK corporate history....
Sun, 30 Sep 2001
A new luxury sports car is to be built in Birmingham instead of Italy. MG Rover confirmed on Sunday that it will build up to 2,000...
Wed, 21 Nov 2001
Land Rover are unveiling the company's third all-new Range Rover in 31 years with a launch at the Design Museum in London. Industry...
 

Compare classic car insurance quotes and buy online. A friendly service offering access to a range of policies and benefits.

Get a quote