Car production returns to Longbridge two years after MG Rover collapse

Car production has restarted at Longbridge, two years after the collapse of MG Rover, as the plant's new Chinese owners begin building the MG TF sports car.

The factory reopened on 29 May. The reopened plant is a scaled-down operation that will initially produce only the MG TF, although the owners, Nanjing Automobile, have plans to build other cars there in future.

How Nanjing came to Longbridge

MG Rover went into administration in April 2005 with debts of more than £1.4 billion. More than 6,000 workers lost their jobs, and as many as 25,000 jobs were reported to have gone in related supply industries, making it one of the biggest industrial collapses in recent British history.

After several bidders showed interest, the administrators announced on 22 July 2005 that the main remaining assets had been sold to Nanjing Automobile Group for around £53 million.

The Chinese company shipped equipment from Longbridge to China, and Honda removed tooling for the Rover 45, which contained Honda parts. For a time it was unclear whether car production would ever return to Birmingham.

A scaled-down plant

The MG TF, a two-seater sports car, is now being assembled at Longbridge again, using only a small part of the vast site that once employed tens of thousands of people.

At its peak in the late 1960s, Longbridge employed around 25,000 workers, building cars including the original Mini. The plant was founded by Herbert Austin, who bought the site in 1906 and built the first Austin car there that year.

What it means

For south Birmingham, the return of car making is symbolically important after the shock of 2005, even though the number of jobs involved is small compared with the thousands lost.

Nanjing has said it plans to build other cars at Longbridge in future.

The rest of the site

Much of the land that is no longer needed for car production is set to be redeveloped, with plans for new homes, shops and businesses on the former works.

The reopening is a reminder that, although mass car production has gone, the name of Longbridge remains closely tied to the history of the British motor industry.

The other bidders for the business in 2005 had included Magma Holdings, a group including former Ford and General Motors executives working with the Chinese car maker SAIC, and Project Kimber, a consortium of Birmingham businessmen led by David James.

Nanjing was also reported to have held talks with GB Sports Cars, a venture by former Rover managers, about re-establishing MG production at Longbridge.