Smart Roadster news - New 'MG Midget' on its way - 2006

Two ailing brands could come together to give each other a new lease of life.

A British firm is in talks with DaimlerChrysler to take over the Roadster model from struggling Smart and re-market the diminutive cars under the MG banner.

The Smart Roadster went out of production at the end of 2005, but this would be likely to be the first car to be revived with the MG badge.

The Roadster may well be christened the MG Midget, reviving one of MG's oldest names.

The British team heading Project Kimber is confident that there's a future for Smart and MG.

Production of the new MG Roadster would be in Coventry, although the deal hinges on Chinese firm Nanjing leasing the MG name to Project Kimber.

The Chinese company is still committed to restarting car production at the Longbridge plant, where Rover and MG models were built before MG Rover collapsed in April 2005.