Job to go if MG Rover Chinese deal goes ahead

Some 2,000 jobs at MG Rover’s Midlands plant may be cut if inward investment by a Chinese car manufacturer goes ahead.

Shanghai Automotive Industry Corp (SAIC) plans to shift production of the Rover 25 to China and export it to the UK, according to the Financial Times..

A tie-up, seen as Rover’s last chance to save its Longbridge plant, has been pushed by UK Chancellor Gordon Brown.

Rover confirmed the deal would take place “not very far away from this time”, although it said talk of job cuts were “speculation” a this stage.

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Rover and SAIC signed a technology-sharing agreement in August. Rover management has said it was confident the £1bn investment deal would be signed in March or early April.

Transport & General Worker’s Union general secretary Tony Woodley said he believed job cuts were inevitable if joint venture goes ahead.