SAIC:No commenting on buying Rover

Yesterday, SAIC spokesman told reporters that there was no confirmation about SAIC buying shares of BMW's Rover Brand, but she did not deny Rover is one of SAIC alternatives. However, from SAIC schedule, SAIC should have been initially identified the new brand models.

Yesterday, the British newspaper reported that German auto manufacturer BMW has agreed to sell the Rover brand to Shanghai Automotive Industry (Group) Corporation. According to the informed sources, SAIC has agreed the purchase price, higher than 11 million pounds (about 173.6 million Yuan), and it is said the deal could be finished this September.

Once SAIC facilitated the Rover brand, a year later, Rover brand and MG brand will compete fiercely in both domestic and international markets. Last year, SAC bought all the assets of the British company MG, which cost 53 million pounds from PricewaterhouseCoopers, including the MG brand, which is named as Mingjue in China.

In the past 40 years, MG and Rover have been MG Rover company's two brother brands, the similar production explored the luxury car market, but the cooperation between the two brands is likely to be competitors. According to information provided by SAIC and SAC, the two state-owned enterprises would soon start own research and development of a new models, and the platforms are based on the Rover 75, of which SAIC has the intellectual property right, while SAC has the facilities. If the two enterprises co-developed the brand, then the two will soon compete intensely in the international market.