Nanjing Automobile, the new Chinese owner of MG Rover, today raised the possibility that car production at Rover's Longbridge plant could restart with the return of 1,200 jobs.
Nanjing said two of the three final assembly production lines at the Birmingham plant would be retained along with its paint shop in what would be the latest and most unexpected reincarnation for Rover.
The company, Britain's last major homegrown carmaker, called in the administrators in April with the loss of more than 5,000 jobs. It was in a dire financial state, with debts of £1.4bn and a £415m hole in its pension fund.
Four or five new models are being considered by Nanjing, which said it plans to build 100,000 cars a year at Longbridge within five years.
"The viability of the UK business is dependent upon the success of our new operation in China, because it allows us to take advantage of a competitive global supply chain and shared new product development," Wang Qiu Jing, the vice-president of Nanjing, said.
Speaking from Longbridge, he said the company had been working with its business partners since completing the purchase of MG Rover's assets.
"This plan is based on our assessment of the market conditions in the UK and Europe, on the efficient use of those assets to be left at Longbridge and on the formation of a new management team," he added.
Mr Wang said Nanjing hoped to complete its business plans in the next two or three months, and would be investing in assets remaining at Longbridge in addition to reconfiguring production facilities.
"At the moment, we believe we can create up to 1,200 jobs at Longbridge - but this figure could be higher, subject to more detailed planning," he said.
Tony Woodley, the general secretary of the Transport and General Workers Union, said he was convinced Nanjing was genuine about its plans. However, he added: "They still don't have sufficient finances, including from the [UK] government, and we will help them to do that."
"We remain of the view that China's best chance to be a global player in the industry is to combine Nanjing's activities with those of a partner."
Nanjing bought MG Rover for an undisclosed sum in July, beating off competition from the Shanghai Automotive Industry Corporation.
At the time of the deal, administrators PricewaterhouseCoopers said Nanjing intended to move the engine plant and some car production plant to China but would also "retain some car production" in the UK.
