A $1 billion investment will see the first American-built MGs will roll off the production line in Oklahoma in 2008.
Nanjing Automobile, which is planning to bring back car assembly to Longbridge next year, signed a letter of intent in Oklahoma yesterday.
Duke Hale, who resigned earlier this year from his post as chief executive of Lotus's American operations, will head the operation as president and chief executive. He said: "We are going to bring MG to North America. By 2008 there will be a new line of MGs across the US. That's exciting news. We lost all the stuff we did not want, the pensions, the legacy cost and we took the good."