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China Brilliance, MG Rover Enter Car-making Joint Venture
British car maker MG Rover said on Thursday it had entered into a joint venture with Chinese counterpart China Brilliance to develop and produce automobiles.

The alliance will enable MG Rover cars to be produced in China, while the British group will also be able to develop vehicles based on China Brilliance models, MG Rover said in a statement.

The two companies will cooperate on the supply and manufacture of engines and development of a new range of engines.

Though no financial details were given, MG said both firms would invest "substantial resources" into ensuring the success of the venture, which the two partners will jointly own 50-50.

Under the deal, Brilliance will have exclusive rights to make and sell the joint venture vehicles in China, and the majority of Asia and Africa, while MG Rover will have exclusivity in all other markets, though the US market might be shared.

The deal marks another step along the road to recovery at MG Rover, which was sold by BMW for just one pound in 2000 in a management buyout of the flagging company.

For China Brilliance, it adds yet another name to the list of automakers it has teamed up with, including Toyota, General Motors, BMW, London Taxi International, Mitsubishi and Renault.

( March 22, 2002)

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