Rover's Chinese deal in fresh doubt

PLANS for MG Rover and the London Taxi offshoot of Manganese Bronze to break into China's exploding auto market have been thrown into further doubt.

Shares in their partner, minivan builder Brilliance China Automotive Holdings, were suspended in Hong Kong. No reason was given, but the move followed reports that a local government-backed buyer of Brilliance had run out of cash to complete the deal.

The newly-established enterprise, with the same name, is short of the 435m yuan (£32m) required to complete the first phase of the deal.

This is the latest setback in the stormy history of Brilliance China. It was once controlled by Yang Rong, one of China's richest men, who is now in the US after being charged with corruption - an offence that carries the death penalty in China.

Yang last year negotiated the deals with MG Rover and London Taxi which could have put sports cars and black cabs on China's streets. His departure, and the silence about the progress on the joint ventures, has raised questions about whether the deals will be completed.

James Borwick, chairman of Manganese Bronze, warned shareholders in September that changes at Brilliance China had put the joint venture at risk.