Sunday, July 31, 2005

economy - As if running a bankrupt car company is not difficult enough

Nanjing Auto has won the bit for MG Rover, but dark clouds are gathering over the already bankrupt legacy they bought, putting at risk just another Chinese effort to go global. The Scotsman has severe doubts:
While Nanjing won the auction, there are four car companies in total claiming rights to various bits of MG Rover - which is casting doubts over what Nanjing has actually bought.

Its Shanghai competitor continues the struggle:
SAIC argues that the MGs are derivative from the Rovers, so it is impossible to build the MG models without infringing its intellectual property. Nanjing, and the administrators, disagree. Furthermore, SAIC owns the intellectual property to the engines that power most of these cars, but Nanjing owns the equipment that builds them.
On top of that Japan's Honda and German's BMW claim also stakes. Nanjing might not build many cars in the UK, the paper says.

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