SAIC Motor, the owner of MG Motors, decided to end manufacturing vehicles at their Longbridge plant in UK and will be continuing on in China.
There were several reports that the reason for the plant's transfer is mainly because of Britain's vote to leave the European Union which delayed the company's plan to distribute vehicles in European countries other than the UK.
However, MG denied this and said that with the transfer, they aim to achieve centralize distribution as well as manufacturing efficiency.
“Ending production will ensure global market competitiveness and support long-term investment into new product lines,” MG said.
MG said that once production in the Longbridge plant stops, the company will then pay the 10-percent import tax on fully assembled cars that come from China. Previously, the company only pays 5-percent tax for the cars are assembled locally.
In contrary, SAIC, will save the rent for their Longbridge plant costing around GBP 1.8 million a year. SAIC said that despite the transfer, they will continue to design and engineer their MG cars at Longbridge plant in the long run. Also, sales, marketing and after-sales operations will continue.
The company also estimated that at least 25 jobs will be lost with the transfer. Models that used to be produced in the UK plant include the MG3 and the MG GS which recently made its local debut last month.