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MG not worried as number of dealers outstrips sales

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An iconic British badge and a car built at the famous Longbridge factory - once home of British Leyland - was seen as a recipe for success for the relaunch of the Chinese-owned MG brand, but things have not been quite as easy after a sales slump saw fewer cars sold than there were dealerships in the UK last month.

In July, MG sold just 23 of its MG6 GT and MG6 Magnette (or hatchback and saloon) models - less than one per dealership in the UK.

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While record-breaking sales in China and £4.5bn worth of investment into its research and development arm are headline news in Asia, UK sales have not matched up to the hype.

However, MG has revealed it is not concerned by the slowdown in sales and insisted the brand is 'moving in the right direction' in 2012.

Doug Wallace, PR manager at the fledgling brand, says sales of 553 in 2012 to-date are 239 per cent higher than last year, when the two-strong car range arrived in the UK.

The Skoda Octavia-rivalling MG6 model comes with distinctive designs and a price tag to match at £15,455 for entry-level models.

Bigger than the likes of a Focus but smaller than the Insignia and Mondeo, the MG6 is targeting the more subdued Octavia with a more chunkier, sportier design and a unique 'fastback' sloping rear end.

MG can also point to the largest boot space for a car in its class and, according to MG, the lowest insurance group offered in the larger hatchback segment as testament UK buyers should be considering the car as a large family car option.

According to MG, the slow sales are down to visibility and lack of knowledge about the car. This, says Wallace, is something that will change in future.

He said: "There are close to 1,000 MG6 models on the road now and the satisfaction feedback from owners is very strong so this is helping sales as visibility on the roads gradually increases."

More choice will also be a factor, with a new 1.9-litre diesel option set to arrive later in the year and an all new model, the MG3 compact hatchback, set to be launched before the end of 2012.

Despite over 40 dealerships selling just over 20 models in July, Wallace hopes increasing sales will lead to more, not less, MG dealerships, making buying an MG car easier to buy than ever in the UK.

He said: "We are also now being approached by a range of dealerships wishing to discuss an MG franchise with us.

"We have appointed five new dealers this year - Beechwood in Derby, Pinkstones in Stoke on Trent, Rivervale in Brighton, Brown & Gammons in Baldock, Herts and Charles Warner in Lincoln. We hope to appoint more dealers by the end of the year."

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