MG ceases UK production

Friday, September 23rd, 2016 - autos, cars, motoring, news

Source : MG ceases UK production

MG pulls out of UK production British brand MG, which can be owned by Chinese automotive giant SAIC, will not produce its range of cars at its Longbridge plant

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MG can be to cease production of cars at its Longbridge plant, a few years after the brand began producing cars there once more.

Production will currently take place in China, ending MG’s UK-based finishing production. The move has been under consideration for as long as two years, according to MG’s head of sales along with also marketing, Matthew Cheyne. 

Cheyne explained which there were many reasons for the relocation, nevertheless the main reason for the decision was MG looking to streamline its production process because its UK plant’s production output could not compete with its larger, more modern facilities in China.

“modest volumes aren’t economically viable at a site of Longbridge’s size. Elsewhere inside the planet we have state-of-the-art facilities, so which’s more cost-effective to import along with also build them elsewhere. There was no efficient way to carry on doing which inside the UK.,” Cheyne explained.

Despite the loss of 25 jobs at the Longbridge plant, the MG facility will still continue to employ more than 300 people, with fresh recruits having been taken on in different areas of business. MG’s development of its style range will continue to be UK-based though, as Cheyne revealed the company’s investment in a fresh £1.2million test-bed for fresh versions. Sales, marketing along with also aftersales are also here to stay.

The move away through UK production can be also partially due to the UK’s vote to leave the European Union, according to Cheyne. He explained which since the value of the pound dropped following the Brexit vote, the cost to MG of producing its product range rose, rendering the production operations inside the UK no longer cost-effective.

Alongside the move, MG can be also starting a fresh initiative to build a more global product line-up, rather than starting using a car destined for international markets, then re-engineering along with also designing which to fit into the UK market. Cheyne also denied which the move would certainly have any impact on the cost of MG cars, given the economic benefits of moving production overseas.

According to the BBC, the move has drawn criticism through local Labour MP for Birmingham, who dubbed the pull-out “hugely disappointing along with also premature”.

MG’s market share, according to the most recent set of official industry statistics, was 0.12% in August This specific year. 

The news of the wind-down of production comes just one day after the SMMT announced a 14-year high for UK car production figures for August, although MG’s limited domestic sales mean which This specific can be unlikely to be considerably impacted.

Cheyne explained which the move would certainly not affect MG’s upcoming product plans, including the production of a fresh modest SUV to sit below the brand’s current GS SUV. He remained optimistic about MG’s future inside the country, stating: “Going forward, we contain the availability for production to build in China along with also different markets. We’re part of a massive global company, which we haven’t been taking advantage of, which we currently can.”

Production at the Longbridge plant re-began in 2011, following a 16-year hiatus after Rover along with also MG went under in 2005.

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