SAIC-Nanjing acquires European rights to MG name

Chinese automaker Nanjing purchased much of the MG brand while then-rival SAIC took ownership of other names under the MG umbrella, including several Rover models. Not included in either deal, however, were rights to distribute under the MG trademark in Europe. That has been rectified, however, for a mere €1.25 million.

The acquisition of trademark rights in the MG name means SAIC-Nanjing can legally distribute MG cars in fifteen countries, including Russia, Italy and the Netherlands, reports AutoTelegraaf. The purchase of the name rights should see production at Britain's Longbridge plant ramping up soon.

Late last year SAIC and Nanjing announced their merger, and prospects of real progress on a return of European MG production and sales was looking bright. But the stumbling blocks of quality control and legal technicalities like the trademark rights held things up. Now that the marque can use the mark freely in Europe, SAIC-Nanjing is a step closer to realizing production.

SAIC independently produced cars under the Roewe brand for the Chinese market prior to the merger. Likewise, Nanjing had built some MG ZT and ZF models in China, although sales were slow due to a lack of brand awareness.