MG production to end at Longbridge

MG Motor UK, owned by Chinese group SAIC, said vehicle assembly was no longer required and cars would arrive fully built ready for distribution to UK dealers in future.

There will be 25 redundancies at the 69-acre site off Lowhill Lane, but sales, marketing and after-sales operations will remain at the plant.

Two models are currently finished at the site - the MG3 and the MG GS sports utility vehicle.

The company said that the end of vehicle completion activities was part of a strategic UK business review and the UK operation would now concentrate on growing sales volumes, streamlining costs and centralising global distribution

It said it would ensure global market competitiveness and support long-term investment in new product lines.

More than 300 skilled design engineers and other staff will remain at the SAIC Motor Technical Centre at Longbridge.

The MG parts warehouse will also stay at Longbridge and a new vehicle logistics team will also be created and operated from there.

Where possible, production staff will be moved into new roles.

Matthew Cheyne, head of sales and marketing at MG Motor UK, said: "With efficiency and flexibility both key to long-term market success, off-shoring vehicle production is a necessary business decision.

"Relocating to state-of-the-art overseas production facilities will allow faster access to product and help to meet ever-increasing customer demand, all while maintaining the highest levels of production quality.

"In addition, improving production scale efficiencies will support ongoing sales growth in the UK market – a key priority."

Mr Cheyne added: "We have been in discussion with Government representatives on a local and national level to explore alternative solutions moving forward. We will continue to do so during this period of consultation and will work with all parties to find the best outcomes for those people likely to be affected within the company."

Sales for MG in the UK continue to rise and last month company announced a 130 per cent increase in market share of new model registrations, contributing to a total year-on-year increase of 18 per cent.

The iconic British MG brand can trace its history back to 1924.

MG had resumed making cars at Longbridge in 2011 and it was the first large-scale production at the plant since the demise of Rover in 2005.