Now that TVR has packed up and left shop, Blackpool’s struggling auto industry may see a savior in the return of two of the most famous names in British motoring. A proposal is currently under negotiation that would see the production of MG and Riley sports cars start up in a new factory in Blackpool. The initiative is being led by 62-year old William Riley, and could one day see the niche British racers built both at Blackpool and at another facility in the US.

Under the plan, Riley would buy out the rights to the MG Sports and Racing brand and then develop a range of high-performance MG sports cars and hand built Rileys. A new enviro-friendly factory would be set up in the Blackpool site with a similar facility to be built in the US to create LHD versions. Up to 100 ex-TVR employees could be hired to work in the new British plant, which is expected to churn out close to 1,800 cars per year by 2010.

The talks, which began last week, are still at a very early stage but Riley is very confident and has asked the local council to draw up a contract for the production site. He secured the rights for the Riley brand back in 1999 and is now in the process of gaining the rights to the MG sports label. Riley hopes to secure the deal within the next seven to ten days, with the first cars to be produced likely to be the MG X-Power SV and another up-market MG X-Power roadster and coupe.