Slow road for Rover's China deal

ROVER's Chinese deal could take longer than the two months it indicated after would-be partner Shanghai Auto said it was in no rush to deliver.

China's biggest car maker said the January sign-off for its £1bn investment in a joint venture with the British car manufacturer was merely Rover's 'own opinion'.

Shanghai Auto's Xue Huo said: 'We don't have any timetable at the moment.'

Huo's comments follow those of Rover communications director Daniel Ward who said he was 'confident' that an agreement would be signed by January. Under early outline plans, Shanghai Auto will take a 70% stake in the new venture, producing up to 800,000 Rover cars a year with a further 200,000 built at Rover sites in the West Midlands.

Any deal will need to be approved by the Chinese government. It follows the signing of an exclusivity agreement between the pair back in June

Final terms of the deal will be scrutinised to see if Rover boss John Towers and fellow directors Peter Beale, John Edwards and Nick Stephenson are to receive bonuses.

The quartet bought Rover for £10 from BMW in 2000. Along with MG Rover chief executive Kevin Howe, they last year took home £16m in salaries, pension contributions and other income in spite of losses of £89m.

Shanghai plans to become the world's sixth-largest car maker on the back of the deal which will give it access to Rover's 1,247-strong European dealer network.

It will also allow Rover cars to be sold in China.