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ARTICLE · 30 SEPTEMBER 2016

Déjà Vu All Over Again? Shanghai Auto Pulls The Plug On MG Assembly At Longbridge

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MG car production at Longbridge will come to an end - again - after its Chinese owner, Shanghai Automotive (SAIC) said that it would "no longer be required."

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This article was originally published in The Birmingham Post on 26 September 2016.

MG car production at Longbridge will come to an end - again - after its Chinese owner, Shanghai Automotive (SAIC) said that it would "no longer be required." SAIC said that centralising production would "create a leaner business model and ensure global market competitiveness". That means cutting costs.

The move came despite a 130% increase in sales as compared with last year. Local Northfield MP Richard Burden described the decision as "hugely disappointing" and "premature".

I share his disappointment. SAIC could have done much more to explore what could be done to make local assembly more feasible. The firm had a flawed business model - importing semi-finished cars from China with only limited local assembly on site at Longbridge involving around 40 workers, which left the firm vulnerable to exchange rate swings.

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