Nanjing Automobile, the Chinese owners of MG Rover, today unveiled plans to resume production at the Longbridge plant but on a much reduced scale.
About 80 people are working at the plant and more will be recruited as the business develops, said China's fourth-largest car maker.
But only an additional 200 people are expected to be hired. Before MG Rover collapsed last year, about 5,000 people worked at Longbridge.
When Nanjing paid £53m for many of MG Rover's assets, there were hopes that up to 2,000 jobs would be created. However, the bulk of the construction work will be done in China where labour costs are low.
The workers at Longbridge will assemble the MG TF from component kits made at Nanjing's factory in China. Production is due to start early next year.
The annual production capacity will be 15,000 and the cars will be sold in the UK and Europe, although they may be exported to other parts of the world.
The president of Nanjing, Yu Jianwei, said: "MG, one of the great motoring brands, is safe in our hands. We are committed to rebuilding the marque in major markets, with cars supplied from the UK or China, as appropriate."
Nanjing has signed a letter of intent with investors to set up the North American MG motor company in Oklahoma. Nanjing said it was discussing setting up a vehicle and CKD export base in China, an MG car assembly plant in the US and "the implementation of the proposed business plan in MG's home base in Longbridge".
CKD cars are those in which the parts are made in one place with final assembly taking place elsewhere. This kind of work will take place at Longbridge, rather than production as was the case before.
About 60% of the 12,000 to 16,000 TF coupes to be built annually in Oklahoma will be for North America, with the remainer for Europe. The Longbridge plant will build the TF roadster and the Nanjing site will assemble three saloon models.
The Transport and General Workers Union last week expressed "surprise and concern" at the Chinese carmaker's decision to open a plant in the US to assemble MG-branded cars.
Birmingham city council welcomed Nanjing's plans for Longbridge. Mike Whitby, the council leader, said plans to revive the MG TF sports car at the factory would herald a prosperous future for the city and help to foster already strong business links between the West Midlands and cities such as Nanjing.
Mr Whitby said: "We are delighted by Nanjing Automotive's renewed commitment to the former MG Rover site in Birmingham. This can act as a springboard for companies in both countries to join forces to establish themselves in the opposite markets."
