24 February 2004

MG Rover is once again looking abroad for the solution to its production problems. In a statement issued last week it was revealed that the British manufacturer could collaborate with Proton on future cars.

Phoenix Venture Holdings, the parent company of MG Rover, has entered talks with the Malaysian manufacturer to 'explore the feasibility of a number of potential collaborative projects.' Nothing more specific has yet been released.

MG Rover has been struggling to develop replacements for its 25 and 45 models, and has recently revamped Tata's Indica for the UK market, badged as the CityRover(pictured). It could doubtless benefit from the reduced costs and increased production economies and engineering knowhow that a significant agreement with Proton would bring.

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