Citing unnamed sources, the daily said that China's SAIC Motor Corp Ltd, which now owns British brand MG, will be taking a 49 percent stake in Westar Maxus to establish an assembly plant here with investments totaling up to RM1 billion.
If the report proves to be true, it will be the second MG local assembly operation in the region. Currently SAIC has joint venture with Thailand's CP Group, to assemble the MG3 and MG6 models for the Thailand market.
Separately, SAIC has also inked another deal with General Motors earlier this year to setup another operation Indonesia to locally assemble the SAIC-GM co-owned Wuling brand light commercial vans. SAIC is also General Motor's local partner in China.
Previously, there were talks of SAIC joining hands with Federal Auto Holdings Berhad to distribute Thai-made MG vehicles in Malaysia, and a memorandum of understanding was also signed in April 2013. Two years have since lapsed with no updates on the matter and it is understood that the deal with Federal Auto is now off.
The MG brand was last distributed in Malaysia by Brooklands Motors, which winded up its new MG cars business in 2005 (it continued to provide after sales support).
In Thailand, MG sells four models - the MG 6 Fastback (1.8-litre turbo petrol), MG 6 Sedan (1.8-litre turbo petrol and 1.8-litre normally aspirated petrol), MG 3 Hatchback (1.5-litre petrol), and MG 3 Xross (1.5-litre petrol).