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

New MG Rover built in India

20 November 2002

The new MG Rover model will be built at a factory in India, the Birmingham-based company has announced.

The small car, which has not yet been named, will be built by Tata Engineering at its factory in Pune. But it will be based on Rover's design and engineering standards.

The new model, which will be sold throughout the UK and Europe next year, is based on Tata's Indica car which is currently built at Rover's Longbridge plant in Birmingham.

'Skilled workforce'

Union leaders say they are surprised at the move and will be seeking urgent talks with the company to see how MG workers in Britain will benefit. Kevin Howe, chief executive of MG Rover, said the new car would reach a whole new customer base.

"It will also fit perfectly in to our existing product portfolio," he added. "The Pune factory has state-of-the-art facilities and a highly skilled and dedicated workforce."

Ratan Tata, chairman of Tata Engineering, described the introduction of the new car as a "milestone" for both companies. "It is a great endorsement of our engineering and manufacturing expertise and it marks the start of what we hope will be a long and productive relationship."

'Urgent talks'

But Tony Woodley, deputy general secretary of the Transport and General Workers Union (TGWU) said collaborative deals should benefit both parties. "While we welcome anything that cuts costs, there are too many unanswered questions in this case.

"It does not seem like a good deal and I shall be seeking urgent talks with the company." Tata is a $9bn conglomerate based in India which has interests including steel, communications, consumer products, chemicals, hospitality and IT.

It is made up of 80 companies and employs 225,000 people. MG Rover employs 6,500 workers at its Longbridge plant, which produces 170,000 vehicles a year. MG Rover said the deal with Tata was a "positive step for the company" and would benefit all its employees.

More news from the archive

Thu, 21 Mar 2002
MG Rover and the Chinese automotive group, China Brilliance, have signed a deal to create a new company building small and medium-sized...
Fri, 07 Jun 2002
British carmaker MG Rover has announced plans to take over a car factory in Poland as part of its effort to assemble and sell more...
Thu, 11 Jul 2002
Rover's Longbridge plant: Edging towards profitability? Car maker MG Rover has said it will not break-even this year after all....
Tue, 22 Oct 2002
MG Rover Group has launched a high performance sports car that it hopes will rival the likes of Porsche, Maserati and Jaguar. The MG...
Wed, 23 Oct 2002
The Chinese authorities have issued an arrest warrant for Yang Rong, the missing former chairman of Brilliance, the country's biggest...
Fri, 14 Feb 2003
MG Rover is considering a £300m deal to buy a Polish car factory. The Polish authorities have agreed to allow the Birmingham-based...
Fri, 02 May 2003
A union leader said MG Rover misjudged the mood of workers at its Longbridge factory in Birmingham after they voted to call off a planned...
Tue, 08 Jul 2003
The new City Rover will cost about £6,000 MG Rover is unveiling its new small car at its Longbridge factory in Birmingham. The car...
Wed, 17 Sep 2003
Tata Motors, the Indian firm that is building MG Rover's next car for the UK market, has been showing off the City Rover, which is...
Tue, 11 Nov 2003
Union leaders are to meet the Birmingham-based car group MG Rover after it was announced that a £12.9m trust has been set up for senior...