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The famous MG and Austin brands that generations of British car lovers have been known, should be revived on the Nanjing Automobile Corporation, based in Nanjing, Jiangsu Province, China.

The company has acquired the assets of MG Rover in July for 50 million pounds. These activities include the assembly lines, R & D equipment, and some brands of cars.

The project was approved by the Chinese government, so that one expects to go ahead and manufactureEarly 2007. The first model assumes Nanjing Auto to produce, the MG75. The company expects to 200,000 cars, 250,000 engines and 100,000 transmissions per year for production.

Another Chinese company, Shanghai Automotive Industry Corp. has recently acquired the rights to the Rover 75, Rover 25 and its associated motors. So it seems that these venerable British brands can be resumed in a limbo of bankruptcy after years of languishing.

** Symptomatic emergingChinese auto industry

In many ways, this revival is the oldest Western models of cars is also a return to former Chinese strategists and representatives of a movement into a new future. In the past, Chinese domestic car market was virtually closed to imports to protect domestic production and sale of the old, outdated and technically inferior cars.

But as the Chinese economy has exploded in recent years, and the size of the middle class has grown exponentially, newConsumers in cash were more content to ride on old cars. So instead of trying not to keep Chinese-made cars out of the country, the Chinese government has begun so that cars imported into the country, until they were foreign companies wishing to invest in partnerships with Chinese companies.

** The automobile industry success

The result was the creation of one of the largest car manufacturer in the world in industries where it was 15 years ago there was very littleProduction at all. In 1990, the total production of vehicles in China, 42,000 parking spaces. In 2004 the country produced 2.3 million vehicles. And by 2007 the target of more than 6 million vehicles overtook Germany as the third largest producer of vehicles in the world.

Over the past ten years, has to crawl to the subject of a lot of time for the big demand from the economic miracle that has taken in China to be justified. In other words, the Chinese industry to operate without thecompetition and regulatory issues involved in exporting to countries like the United States, Canada or Europe.

These questions are important. Ironically, the Chinese auto industry lacks a central organization, all major car manufacturers in order to be competitive. Auto plants all over the world have been designed to focus on certain products to be flexible enough to change products as required, and are fixed in an elaborate system of coordination with sister plants and integratedSuppliers.

All this requires a level of economy, communications, transportation and refinement, there is still rough and ready business in the world, developed in China.

** China will soon be a mass exporter of cars?

The development of significant domestic capacity has many of them assume that China will finally start the rest of the world full of cheap cars to run – as they did with other industrial products. Some observers sayWhereas it took 20 years for Japan to acquire a strong position in the United States and Korea have in 10 years, so one would expect the Chinese to do in 5 years or less.

But are these problems of organization and direction of meaning. While consumers in the United States, Europe and Japan may be willing to sacrifice some 'quality at a lower price, it is unlikely that environmental standards are relaxed in these countries may be cheapVehicles.

There are also serious lag of R & D in China. The Japanese and Koreans have been able to capture a significant portion of the market through the production of technologically advanced models and through the use of quality control very severe. But none of these things are still in the forefront of the Chinese automotive industry.

Thus, while the production capacity in China is growing in the coming years, it is not clear that this can be easily translated into foreign sales.

Only time willsay.

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