Federal Auto plots return of MG to Malaysia
The iconic former British brand MG, now under the ownership of the SAIC Motor Corporation Ltd, is being lined for a potential return to Malaysia, pending the success of talks between SAIC and Federal Auto Holdings Bhd (FAHB), the wholly-owned subsidiary of MBM Resources Bhd (MBMR) that has been synonymous with the Volvo brand since the 1960s.
A memorandum of understanding (MOU) has been signed by the SAIC and Federal Autho, who have agreed to conduct further discussions, due diligence, and feasibility students on the proposal. If successful, the deal could also even lead to the local assembly of MG vehicles in Malaysia.
Formerly the sole distributor of Volvo cars in Malaysia, Federal Auto has reverted to the role of a dealer with the establishment of Volvo Car Malaysia in 1999. The company has reinvented itself since then by adding Volkswagen and Mitsubishi into its network of dealers. Should talks with SAIC succeed, MG will officially become the fourth brand in Federal Auto’s portfolio.
A leading automotive company in China, SAIC is mainly engaged in the development, production, sales of and investment in passenger vehicles, commercial vehicles and automotive components and parts, as well as automotive related services such as trade and financing. Vehicle brands owned by SAIC include Maxus, MG, Roewe and Yuejin. The company also manufactures a wide range of vehicles under the Baojun, Buick, Chevrolet, Iveco, Skoda, Volkswagen and Wuling brands through joint ventures.
