MG ROVER today lifted the wraps on its all-new city car, the Indian-built CityRover.
Produced by the Tata corporation in Poona, to Rover specification, the small supermini could be vital to the survival of the Midlands-based car maker which is expected to show an £85 million loss for last year.
The car, which is a version of Tata's own big-selling Indica, is expected to cost from £6,500 to £8,500 when it goes on sale in UK showrooms.
Over the next five years Rover is expected to import around 100,000 CityRovers from India, and the hoped for profits will be used to help MG Rover develop a long-overdue new medium-sector motor to replace its ageing Rover 25 and 45 models.
Rover boss Kevin Howe has said he does not fear the fact the new small Rover is being built in India, and not Longbridge, will put traditional Rover buyers off. He has said the factory in Poona is first rate, extremely modern and has excellent quality control.
CityRover will be up against stiff opposition such as the Peugeot 106, Citroen Saxo, Ford Ka, VW Lupo and Fiat Seicento.
The newcomer to the Rover stable will be powered by a 1.4-litre petrol engine and will have a five-speed manual gearbox.
It will come in four levels, Solo, Sprite, Select and Style and is expected to be a choice as a second family car and bought primarily by women.
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Since Rover was sold by BMW to a group of Midlands businessmen headed by former Rover boss John Towers three years ago for just £10 the Longbridge-based car maker has been seeking a tie-up with other firms.
It had been close to an agreement with Far Eastern company China Brilliance to collaborate on producing new generations of engines and cars but that deal appears to be dead in the water.
Instead Indian engineering giant Tata has linked up with MG Rover to become its main partners in developing new models, engines and transmissions.
The two companies have now signed a second agreement whereby MG Rover will sell some Tata vehicles in the UK and Ireland.
Rover chose to source the new small CityRover from India as it saw it as a more cost-effective way than producing its own new product in the Midlands.
The new supermini will also be sold in Europe at selected Rover dealerships.
Rover hopes the latest venture will give the company a much needed boost in income to speed up the development and introduction of a new mid-range model to replace the Rover 25 and 45.