UK government chancellor Gordon Brown will press the case for the proposed £1.5 billion link between MG Rover and Shanghai Automotive Industry Corporation (SAIC) when he meets senior Chinese ministers on Tuesday during a trip to China, the Daily Telegraph reported.
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The paper said the government is thought to be keen to finalise the deal, which would see SAIC take a 70% stake in a new joint venture with MG Rover, before a general election, now widely expected to be on May 5.
The Daily Telegraph noted that the ailing British manufacturer, which desperately needs help to fund development, will inject its manufacturing and design capacity into the venture while, in return, SAIC is expected to fund design of the new models.
A spokesman for SAIC told the newspaper: “Gordon Brown is meeting the Chinese government, which owns SAIC. He will confirm that the British government backs MG Rover’s deal with SAIC.”
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