MG Developing a New Sports Car for 2014

LONDON — MG Motor has begun work on an all-new front-engine, rear-drive open-top sports car to replace its aging midengine TF roadster, now 15 years old. MG insiders tell Inside Line that the company might consider selling the car in the U.S., given the marque's history in North America, but currently have no solid plans for a return.

Development is at a very early stage and has significantly lower priority than the company's plans to introduce both the new MG6 hatchback, already on sale in China, and a new supermini to its U.K. factory. MG's Chinese owner Shanghai Auto hopes to re-establish mainstream car production in Britain and relaunch the MG brand across Europe.

But the company believes that a new sports car is essential to the long-term credibility of MG as a sporting brand. Though far from concrete, the aim is to introduce the model during 2014. It would be built at MG's Birmingham, England plant.

One source close to the project says that MG wants to create a direct rival to the Mazda Miata, which is why a front-engine, rear-drive layout is preferred.

Sources tell us a midengine layout, as used on today's TF, has been rejected because of the styling and packaging limitations it forces on the car, while front-wheel drive has been eliminated for not being sporty enough.

MG does not expect the TF to live much beyond the end of 2010, leaving the brand without a sports car for at least three years while a new model is developed. The company has not ruled out trying to find a partner with which to share a platform.

Inside Line says: Don't expect to see a new MG roadster until the company starts selling bread-and-butter cars in significant numbers. — Richard Bremner, Correspondent