Group Lotus Helps Chinese Carmaker

[Mark H]

The engineering division of Norfolk carmaker Group Lotus is playing a key role in helping Chinese carmaker Nanjing Automobile Corporation relaunch the MG sports car.

 

Nanjing bought the rights to MG cars for £53m together with MG Rover's production equipment, when the British carmaker collapsed in April last year.

 

The Chinese company is constructing a factory in Nanjing which will have the capacity to produce 200,000 cars a year and 250,000 engines, with the MG TF sports car planned to be the first off the production line next year.

 

It is also looking at production facilities in the United States and is planning to use MG Rover's former factory at Longbridge to assemble car kits manufactured in China.

 

Nanjing has signed a contract with the engineering division of Group Lotus to help modernise the MG range of cars. A team from Lotus will work in tandem with engineering consultancy Arup and engineers at a new research and development centre Nanjing is planning to set up at Longbridge.

 

The first car being prepared for launch is the MG TF sports car, with the larger ZT model due to go on sale in 2008.

 

Group Lotus rarely comments on its engineering projects, with client confidentiality a crucial part of any deal. But Mike Kimberley, Group Lotus chief executive, confirmed it was working with Nanjing.

 

Speaking at the London Motor Show, Mr Kimberley said: “I had a meeting with the president of Nanjing who gave us permission to confirm that we are working on engineering projects with Nanjing.

 

“Going forward I believe that if we meet our targets and do things in a cost-effective way within the right timescales, the president of Nanjing said he looked forward to building on our relationship.”

 

Group Lotus is reported to be working on a programme to upgrade MG Rover's K series engines to the European Union's latest emissions standards, so the cars can be sold across Europe.

 

Lotus is also understood to be working on chassis engineering and other development areas.

 

The deal with Nanjing comes as Group Lotus looks to build up its engineering consultancy. The company made more than 200 people redundant in 2004 following the cancellation of a major contract and the ending of another contract.

 

After winning more work, the division, which has operations in the United States, Malaysia and China as well as Hethel, is now working on 230 different projects for 77 different clients.

 

Mr Kimberley said: “The engineering consultancy is important to Group Lotus and we are looking to develop its workload.

 

“As well as Hethel we have people in the United States, Malaysia and in China where this deal has come from.”

 

 

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