China's Nanjing Auto to merge light truck unit, Iveco JV

BEIJING (AFX) - Nanjing Automobile (Group) Corp is expected to merge its light truck unit Yuejin Vehicle Co Ltd with its 50-50 joint venture with Iveco SpA, Nanjing Iveco Co Ltd, the China Automobile News reported.

The newspaper quoted unidentified sources as saying that Iveco, a unit of Fiat SpA, plans to increase its investment in Nanjing Iveco by 800 mln yuan, while Nanjing Auto will contribute its light truck assets to the venture to maintain its 50 pct stake.

Nanjing Auto and Iveco are expected to complete discussions on the merger by June or July, said the newspaper.

Company officials at Nanjing Auto declined to comment.

Last year, Nanjing Auto outbid the country's largest automaker Shanghai Automotive Industry Corp to acquire British automaker MG Rover.

MG Rover: Nanjing to get £666,000 government grant

Nanjing Automobile is to receive £660,000 in government grants to help it restart car production at the former MG Rover Longbridge factory, reports The Times today. The money will come from the Advantage West Midlands Development Agency and Birmingham City Council, and is reported to be specifically for building an effluent plant to treat factory waste in an eco-friendly way, and to "clean" the land. The investment will be matched by Nanjing itself.

The Times also reports today that the final accounts for Phoenix Venture Holdings, the holding company of MG Rover, will be published without the details of its last few months of trading before its collapse. Publication of the accounts has been delayed twice now; the accounts will reveal, however, the salaries paid to the Phoenix directors - still under investigation - prior to the firm's collapse, and the fees paid to auditors Deloitte, themselves facing an official inquiry.

Nanjing signs deal to lease MG Rover plant

Nanjing Automobile Corporation yesterday signed a deal worth at least £60m to lease 40 hectares (100 acres) of the former MG Rover car plant at Longbridge for the next 33 years but with a break clause which will allow the Chinese carmaker to walk away within the next six months if it cannot come up with a viable long-term plan for the site.
Nanjing bought the assets of MG Rover from the administrators PricewaterhouseCoopers for £50m last year. The company said it was hoping to restart car production at Longbridge next year, beginning with MG's TF sports car, which would create between 600 and 1,000 jobs.