EMCC European Monitoring Centre on Change

Nanjing Automobile

Company/Organisation:
Nanjing Automobile

Geographic Location

Country: United Kingdom
Region: Warwickshire; Herefordshire, Worcestershire and Warwickshire; West Midlands
Location of affected unit(s): Longbridge, Birmingham

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles

Employment Effects

Announcement Date: 27-09-2005
Type of Restructuring: Business expansion
Planned Job Creation: 1200

Additional Information

Nanjing Automobile, the Chinese carmaker that bought the assets of MG Rover are to create up to 1,200 jobs at Longbridge. Wang Qiu Jing, vice-president of Nanjing Automobile, said: 'We believe this figure could be higher, subject to detailed planning.' Production of two existing MG models could restart late 2006, the company said, with the aim of lifting production, including new models, to 100,000 a year by 2010. The announcement was designed to head off concern among some that Nanjing was only interested in a so-called 'lift and shift' operation involving the transfer of all the Longbridge equipment to the company's plant in China The plan to build a new business at Longbridge centres on two of the three original assembly lines and the plant's most modern paint shop. The Powertrain engine assets, also bought by Nanjing, will be transferred to China and engines made there will supply cars built at Longbridge. Nanjing has about 400 staff and contractors at Longbridge reconfiguring the site and removing the equipment earmarked for shipment to China. The initial assumption is to reorganise the production facilities at Longbridge to create a production capacity of 100,000 cars, just below the last year's output by MG Rover, which had a much larger workforce. In February 2006 the company renewed its lease on part of the Longbridge site. They also indicated that between 600 and 1,000 workers could be employed in the future on sports car production.