Nanjing Automobile has teamed up with one of the failed bidders for Rover's MG TF sports car business in plans to restart production at Longbridge.

The state-owned Chinese group's new partner, the GB Sports Car Company, is headed by Fraser Welford-Winton. He is the former managing director of Powertrain, a sister company of MG Rover which went into administration at the same time.

Yesterday GB Sports Cars said that in conjunction with Nanjing's advisers, Arup and China Ventures, it would be working on the development of a range of MG cars "to be designed and developed for manufacture at Longbridge".

Mr Welford-Winton added: "I am delighted I will be at the heart of the development and the implementation of a business plan that will produce long-term skilled jobs at Longbridge and create a centre of excellence for sports car activities for which the UK is world renowned."

Since it beat fellow Chinese carmaker Shanghai Automotive Industry Corporation in the bid battle to acquire the assets of MG Rover and Powertrain, Nanjing has signalled its plans to build a family of MG cars in the UK. It had said that its combined research and manufacturing facilities would eventually employ up to 2,000 people, producing between 80,000 and 120,000 cars a year but had not previously committed to Longbridge.

It plans to move most of the production equipment from Longbridge to China but will leave the MG TF line because there is little call for sports cars in China.

A spokesman for GB Sports Car said it was too early to talk about employee numbers or production runs.