Nanjing Inks Lease for MG Rover Plant

Nanjing Automobile Group reportedly signs a 33-year lease on the former MG Rover Longbridge, U.K., plant.

The Chinese auto maker, which acquired the storied U.K. car maker last year, says, despite recent speculation to the contrary, it still wants to build vehicles at the site.

“(The signing of the lease) means we can move forward with our business plan to build cars at Longbridge,” Wang Hongbiao, Nanjing's U.K. chairman, says in a statement.

Last year some 5,000 jobs at Longbridge were lost when MG Rover collapsed. Nanjing has said it wants to produce 80,000 MG Rover-badged vehicles annually at the plant and eventually employ 2,000 British workers. (See related story: Nanjing to Buy Rover, SAIC Threatens Legal Action)

Nanjing would not comment on reports, that the lease includes a 6-month break clause if its plans for Longbridge do not succeed, Reuters says.