Britain's MG Rover unveils powerful new sports car

LONDON, Oct 22, 2002; Reuters reported that MG Rover Group Ltd unveiled a new sports car on Tuesday with more grunt under its bonnet than most rival cars, the two-seater MG XPower SV.

Prices for the machine, capable of exceeding 200 miles per hour (320 kph), begin at 65,000 pounds ($100,500).

The independent British carmaker, fighting to break even in 2003 after being sold two years ago by Germany's BMW <BMWG.DE> for just 10 pounds, said the XPower SV's sleek exterior owed much to the airflow management applied to competition cars.

"The MG XPower SV is a car with appeal to passionate sports car drivers who will relish its extraordinary racetrack performance characteristics," said product design director Peter Stevens at the British International Motor Show in Birmingham.

Stevens, who has worked for McLaren, Lamborghini and Lotus, said the lighter weight of the car was due to the use of carbon fibre body panels, while the flat underfloor and inbuilt front and rear diffusers kept it stable at high speeds.

Auto industry forecaster and markets analyst JDPower LMC said serious sports cars accounted for about 1.5 percent of the European car market and, although demand for those vehicles was not growing much, they improved a brand's profile among well-heeled buyers.

"This is not so much done for the money as for the spin-off effect it will have on its image," said Charles Young of JDPower LMC.

The version on display at the British International Motor Show is the MG XPower SV Club Sport Spec, powered by a special 465 brake horsepower (bhp) five-litre V8 engine, with a top speed of more than 200 mph.

At the top of the range MG Rover said engines with much higher stages of tuning and even factory-approved nitrous oxide injection kits, would give the car power of up to 965 bhp.

At the bottom end the MG XPower SV range will start with a car powered by a 326 bhp 4.6-litre V8 engine, with a top speed of around 170 mph. More specifications on the car would be released during the spring of 2003, said MG Rover.

MG Rover's main rivals are likely to be the Maserati and Ferrari brands of Fiat SpA <FIA.PA> unit Ferrari SpA and Volkswagen AG's Lamborghini.

The MG XPower SV could also face some competition from Mercedes <DCXGn.DE>, Porsche <PSHG_p.DE> and BMW sports cars.

The Porsche 911 costs 65,000 pounds with up to 414 bhp, the Maserati Spyder costs up to 70,000 pounds and has 370 bhp, the Ferrari 550 Maranello costs 152,000 pounds and has 478 bhp. (Additional reporting by Madeline Chambers in Frankfurt)