View Full Version : MG plant plans go up in smoke



NewPlains
03-28-2007, 08:14 AM
NPR reported this morning on the relaunch of MG Motors, and quoted an MG spokesman as saying that the plans for the OK plant are dead in the water. No word on the OKC sales HQ or the OU research center, but I would have to assume they're in trouble too. You can listen to the story here:

NPR : Chinese Automaker Brings MG Back to Life (http://www.npr.org/templates/story/story.php?storyId=9177078)

NewPlains
03-28-2007, 08:19 AM
if you don't want to listen to the entire piece, the salient bit is at 2:55.

Pete
03-28-2007, 08:22 AM
Thanks for that, even though it's bad news.

I'm sure the OKC/OU stuff is off as well, since they said there has been "acrimony" with their U.S. joint venture partner and they don't have any solid plans for American facilities in the foreseeable future.

I was wondering why we hadn't heard anything on this in quite some time.

Easy180
03-28-2007, 12:50 PM
Hope they are prepared for the massive repercussions if this deal falls thru

Widespread boycotts of Chinese buffets :numchucks

wsucougz
03-28-2007, 12:50 PM
WTF? Politicians and media outlets were treating this like the story of the century 6 months ago and it goes and dies without so much as a wimper??? Just one more reason why the Daily Oklahoman is s*!t. My cynical nature is leading me to wonder how much state money they walked away with.

PUGalicious
03-28-2007, 12:56 PM
I thought the story was a little too good to be true when it first was reported. Perhaps those same politicians who were quick to take credit for the original announcement can march right back up to the microphone and cameras and explain themselves. And perhaps no announcement should have been made until the deal was a done deal (as in Oklahomans actually employed) -- kind of like counting your chickens before the eggs have hatched, or even been laid for that matter.

jbrown84
03-28-2007, 01:08 PM
I don't know how it could have been kept quiet that long. And besides, the top executives were employed and working in Oklahoma.

Decious
03-28-2007, 01:26 PM
Maybe all is not lost after all. Who knows?:doh:

Plans clarified for Ardmore MG plant

By Paul Monies
Business Writer

Oklahoma Global Motors LLC continues to work on a project to bring an assembly plant for the MG sports car to Ardmore after reports surfaced this morning saying the deal had been scrapped.
Marc Nuttle, chairman of Oklahoma Global Motors, said he returned from China after meetings with joint venture partner Nanjing Automobile Group Corp. to finalize plans for the Ardmore plant.

"Our business plan remains on schedule to finalize these agreements, Nuttle said in a statement. "We are in the process now of completing all due diligence.

Speculation over the project's future grew after a report on National Public Radio this morning quoted a Nanjing/MG official saying the company's Oklahoma plans had been shelved.

"My understanding is that there is no more plans with the Oklahoma plant, MG's Paul Stowe told NPR. "We are discussing possible ventures in America in the future, but I don't believe there's anything on the table at the moment with Oklahoma.

British media reports have identified Stowe as quality director for Nanjing's MG division. He relocated to China from MG's former factory in Longbridge near Birmingham, England.

A joint statement from state and local officials in Oklahoma said Stowe was not speaking on behalf of the company.

"This individual is not a senior member of the team working with Oklahoma Global Motors and is not currently involved in moving the project forward, the statement said. "Representatives from NAC MG in the U.K. have confirmed that his statement was not an official announcement by the company and reflected his own opinion and not that of management.

Officials said the deal was a complicated project "with individuals and companies on three continents, a foreign government and a former company in bankruptcy.

The statement was issued by the state, Greater Oklahoma City Chamber of Commerce, the City of Oklahoma City and the Ardmore Development Authority.

Nanjing's plan calls for the company to do most of the car manufacturing at a Chinese factory. The company then will ship the cars in kit form to a former MG plant in England and to a factory yet to be built in Ardmore. Nanjing and Oklahoma Global Motors also want a research center in Norman and company offices in Oklahoma City. The venture, which represented a public relations coup for the state, could bring up to 500 jobs to Oklahoma.

Lawmakers last year approved $20 million from the state's newly created Opportunity Fund to attract Nanjing to Oklahoma. As part of that package, Oklahoma Global Motors received a $5 million loan, which it paid back earlier this year. The remaining $15 million went toward a $35 million runway expansion at the Ardmore Airpark next to the MG assembly plant. The runway expansion will allow the airport to accommodate large cargo planes.

A lawsuit challenging the funding package is pending before the Oklahoma Supreme Court.

John
03-28-2007, 02:01 PM
Does that article remind anyone of this? ;)

http://img.photobucket.com/albums/v338/LongJohn81/bagdad_bob_large.jpg

PUGalicious
03-28-2007, 02:37 PM
Let's just say I'll believe it's happening when the workers show up for the first shift.

metro
03-28-2007, 04:59 PM
Oklahoma officials comment on MG Motors’ state plant future
By OKCBusiness Staff - 3/28/2007


State officials released a joint statement today refuting radio broadcast comments made by an MG Motors employee regarding the planned Oklahoma initiative.


In July 2006, the Chinese company, Naijing, announced plans to locate a North American division in Oklahoma which would operate out of Ardmore, Norman and Oklahoma City locations.


According to the statement released by the State of Oklahoma, Greater Oklahoma City Chamber of Commerce, City of Oklahoma City and Ardmore Development Authority, an NAC MG employee in China said today on a radio broadcast, “there are no more plans for the Oklahoma plant,” and that he didn’t believe “there was anything on the table for Oklahoma at the moment.”


However, the statement said, representatives from NAC MG located in the United Kingdom have confirmed his comments were not an official announcement by the company. Further, the individual is not a senior team member working with Oklahoma Global Motors and is not currently involved in moving the project forward.


Oklahoma Global Motors’ Marc Nuttle also released a statement that said he has recently returned from Naijing meetings to finalize an assembly agreement of MG automobiles in Ardmore.


“Our business plan remains on schedule to finalize these agreements,” Nuttle said in the statement. “We are in the process of completing due diligence. There are many details to work through and issues to be resolved, but we are committed to the project and will continue ongoing discussions with all parties involved.”

Pete
03-29-2007, 08:07 AM
Officials say MG plant still on track: Radio report claiming abandonment of Oklahoma plans denied
by Jerry Shottenkirk
The Journal Record
3/29/2007

OKLAHOMA CITY – MGs have begun to roll off the assembly line in China, but the prospects of the same occurring in Oklahoma were questioned Wednesday.

Nanjing Automobile Group Corp. in July announced plans for an assembly plant in Ardmore for the production of the MG TF Coupe, but a Nanjing spokesman told National Public Radio that the company no longer has plans for an Oklahoma plant.

However, Wes Stucky, president of the Ardmore Development Authority, denied that the plans had been scrapped.

“When I first heard it my reaction was that I didn’t believe it because we just had discussions last week,” Stucky said. “The quote on it was not from anyone who had any dealings with us. We are moving forward as planned.”

MG’s Paul Stowe appeared on a morning show on NPR and said plans had changed.

“My understanding is that there (are) no more plans with the Oklahoma plant,” Stowe said on the program. “We are discussing possible ventures in America in the future, but I don’t believe there’s anything on the table at the moment with Oklahoma.”

Marc Nuttle of Oklahoma Global Motors issued a statement and denied there have been changes in plans.

“I have just returned from a week in Nanjing meeting with Nanjing Auto (Group) Corporation officials for the purpose of finalizing an agreement for the assembly of MG automobiles in Ardmore,” Nuttle said in the statement. “Our business plan remains on schedule to finalize these agreements. We are in the process now of completing all due diligence.”

Nuttle did not answer a request for an interview Wednesday afternoon.

The state Legislature paved the way last year when it approved $20 million from its newly formed Opportunity Fund for a $5 million loan to Oklahoma Global Motors LLC and for $15 million improvements to the Ardmore Municipal Airport.

“I think (the NPR story) reflects (Stowe’s) personal opinion,” Stucky said. “He’s not a senior member who has been involved in going forward with this project. Representatives from MG (in the United Kingdom) confirmed that it wasn’t an official statement.”

Stucky said he met with Nuttle on Tuesday and that Nuttle outlined the steps Oklahoma Global Motors, Nanjing Auto, and the attorneys are going through to perfect title to MG.

“When buying something in bankruptcy, it is ‘buyer beware,’” Stucky said. “Before investing more money, (Oklahoma Global Motors) needs to be certain the Chinese have clear title and that the rights to produce the MG can be conveyed. That process is continuing, and Marc (Nuttle) is patiently working through it.”

Stucky said he has not heard from any Nanjing official that the Chinese have changed their mind.

“We understand there are challenges ahead,” he said. “However, we continue to work on the project and are hopeful those challenges will be overcome.”

Gov. Brad Henry said Oklahoma Global Motors “is still involved in that complicated transaction and they haven’t walked away.

“(Nanjing officials) really seemed to like Oklahoma,” Henry added. “We put together a great incentive package that I think they would be foolish to turn down. So I’m still very optimistic.”

Ardmore City Manager Dan Parrott said it appears leaders will follow through on their original idea.

“Apparently this caused quite a stir,” Parrott said. “Wes (Stucky) actually talked to the company and they said the guy (Stowe) didn’t know what he was talking about. It seems to be much ado about nothing.”

Officials involved in the plans were mostly mum.

Amy Polonchek, executive director of the Oklahoma Department of Commerce, said, “Oklahoma Global Motors asked us not to talk about it since they are working to finalize the deal. We respect their wishes. It happens frequently. I heard the NPR report and can’t talk about it.”

The Department of Commerce, Greater Oklahoma City Chamber, city of Oklahoma City and Ardmore Development Authority issued a joint press release on the status of MG in Oklahoma and echoed Stucky’s thoughts.

“This is a complicated project, with individuals and companies on three continents, a foreign government and a former company in bankruptcy,” the statement said. “There are many details to work through and issues to be resolved, but we are committed to the project and will continue ongoing discussions with all parties involved.”

Officials announced last year that the MG plant would create about 550 jobs in Ardmore, Norman and Oklahoma City with an average salary of $57,875 and an initial payroll in excess of $30 million.

bombermwc
03-30-2007, 08:10 AM
The guy that made the comment about the deal not going on, had no knowledge because he wasn't high enough in the company to know anything. It's like asking the mail room clerk where the company is going to expand.

wsucougz
03-30-2007, 08:48 AM
I wouldn't be so sure of that. Cat in bag... meet world.

Spartan
03-31-2007, 10:34 PM
Okay the MG plant is in Ardmore, not OKC, in case anyone was wondering.

writerranger
03-31-2007, 10:41 PM
Okay the MG plant is in Ardmore, not OKC, in case anyone was wondering.


With offices in Oklahoma City.

--------------

Spartan
03-31-2007, 10:43 PM
Yeah but not very many people have a very solid idea of where the HQ will be, how many employees (it will be 500ish), or what their HQ will look like.

"MG in Oklahoma" is all about Ardmore for now.

PUGalicious
04-01-2007, 07:31 AM
I wouldn't be so sure of that. Cat in bag... meet world.
:yeahthat: Never underestimate the (often accidental) truthfulness of those not quite so "higher up"

Pete
04-02-2007, 09:51 AM
MG president leaves Ardmore plans in doubt
by Jerry Shottenkirk
The Journal Record
4/2/2007

OKLAHOMA CITY – In an interview on National Public Radio Friday, Nanjing Automobile Corp. MG President Yu Jianwei left some doubt regarding an MG plant for Ardmore.

“I should say the Oklahoma project has been ongoing for a relatively long time,” Jianwei said. “In that time there have been some factors that have changed. Perhaps the scope and field of our cooperation have also undergone some changes.”

Jianwei said he believes the U.S. part of the MG operation still wants to build a factory.

“We won’t necessarily be building it,” Jianwei told NPR. “The type of our cooperation is varied. For example, we can cooperate on technological issues or on branding. But cooperation doesn’t necessarily mean that we will go to the U.S. to build a factory there.”

Oklahoma Global Motors LLC last year announced plans for an MG plant in Ardmore with additional facilities in Oklahoma City and Norman. About 550 jobs were to be created with an average salary of $57,875 and an initial payroll of more than $30 million.

However, an initial report last Wednesday heard on NPR quoted Nanjing MG official Paul Stowe as saying the Oklahoma project was off the table.

Officials here, from Gov. Brad Henry to Ardmore Development Authority President Wes Stucky to Oklahoma Global Motors representative Marc Nuttle, denied the project was scrapped.

Easy180
04-02-2007, 09:59 AM
I wouldn't use the word promising to describe this...I wouldn't even use possible after hearing it directly from the big dog

Big hit for Ardmore if it doesn't pan out...Those were going to be some pretty solid salaries especially for that area

Flatlander
04-02-2007, 10:35 AM
Wow,I know its to early to know for sure but I say 0% chance this thing ever happens.Can we get one last photo of all those that made this happen. lol