Chinese car maker SAIC is considering mounting a legal challenge to the decision by administrators PricewaterhouseCoopers to sell MG Rover to rival Nanjing Automotive.
Nanjing, which is owned by the Chinese government, plans to produce five new cars at Longbridge, including a revived MG Midget, eventually creating as many as 2,000 jobs.
MG variants of Rover cars, including the 25 and 45, will be manufactured in China.
However, defeated SAIC has already paid £ 67 million for the intellectual property rights to most of the cars and engines and is now "considering all options, including legal action. "
SAIC is expected to start talks with Nanjing about gaining some of Rover's assets in return for not pursuing its intellectual property claims.
But Tony Woodley, general secretary of the Transport and General Workers Union believes SAIC was planning full-blown manufacturing at Longbridge.