MG aims to build US dealer network

By Kevin Krolicki

DETROIT (Reuters) - MG Motors, which aims to revive the British sports car based on low-cost Chinese manufacturing, on Monday said its plans were on track to bring the brand to the U.S. market in 2008 backed by a network of some 300 dealers.

MG plans to begin selling a roadster and coupe in the United States by June 2008, which could make it the first Chinese automaker to market a car for American consumers.

Duke Hale, who heads MG Motors in a partnership with China's Nanjing Automobile Corp. said at the Reuters Autos Summit in Detroit that while the venture had not yet begun to license U.S. dealers, it was drawing up initial distribution plans focused on larger American cities.

"Based upon our sales ambition and based on where we think our product line will be, we think we need to be looking at a dealer body that's about 300, up to 350 dealers," Hale said.

Hale said it was likely that MG would ask new dealers to run a showroom exclusive to the brand, while allowing them to share a higher-margin parts and service department with other car brands.

Hale said MG would base some of the marketing for its comeback bid -- including showroom atmospherics -- on BMW's successful revival of the Mini Cooper, another storied British auto brand under new ownership.

"They create a great environment in there," Hale said of Mini Cooper dealerships. "They do everything from shoe shines to cafe latte to hooking up your computer to the Internet."

Although some industry analysts have said MG could struggle to meet its launch date targets given the long lead times typical of the U.S. auto industry, Hale said he expected the venture to remain on track.  Continued...