Production of MG cars at Longbridge could resume by late next year, months earlier than originally expected.
Automotive News Europe, an authoritive automotive industry newspaper, reported an unidentified source as saying: "We've been making very good progress."
Plant owner Nanjing Automobile of China has said it plans to revive production at the former MG Rover factory by 2007 and create 1,200 jobs at the site.
To beat the 2007 deadline, Nanjing must complete a joint-venture agreement with a new British partner and establish a new supply chain from China, the paper reported.
It added that a jointventure deal with the GB Sports Car Company could be signed before Christmas. GB Sports Car is a consortium led by Fraser Welford-Winton, ex- managing director of Powertrain.
"We expect to start production at the end of next year," the paper quoted the official as saying.
The first cars the Chinese carmaker plans to build in Longbridge are the MG TF sports car and ZT saloon models
Automotive News Europe also said that Nanjing Automobile and Shanghai Automotive Industry Corp (SAIC) were discussing a way to cooperate in building MG Rover models in China.