Vauxhall has denied reports that its dealers could be used to sell MGs as the brand returns to a full-scale British sales effort.
MG has been owned by GM's Chinese partner SAIC since 2007. GM's regional boss in China has claimed that the firm is in talks with SAIC that could allow the classic British brand access to GM's dealer networks in the UK - which means Vauxhall and Chevrolet.
The move would be a key one for SAIC, which is keen to expand across Europe in 2011 and 2012, because it would give it considerably wider reach than any roll-out project could achieve, and in a much shorter time frame.
"We have agreed in an MOU [memorandum of understanding] that we would discuss the potential for MG to be distributed in the UK," said Kevin Wale, GM China's president and MD. "And that's what we are doing at the moment."
But Vauxhall has since clarified Wale's comments.
"SAIC and GM have a significant joint venture in China," said an official Vauxhall statement. "As a part of the General Motors Corporation - the UK is GM's fourth largest market - Vauxhall is pleased to assist its global organisation.