MG Motor UK has announced it will be stopping all vehicle assembly at its Longbridge branch, just a day after the company boasted its August sales were up 130 per cent on last year.

Instead, vehicles will arrive fully built, ready for distribution to the UK dealer network, which will mean redeployment or redundancy for more than 300 design engineers, manufacturers and other staff at the SAIC Motor Technical Centre.

Although MG have confirmed that most of these workers will be given secure employment, around 25 employees, who worked on the manufacturing element of the operations at Longbridge, are yet to be found alternative work.

MG have admitted that a "nominal number" of workers will face redundancy.

Matthew Cheyne, head of sales and marketing at MG Motor UK, said: "We have been in discussion with government representatives on a local and national level to explore alternative solutions moving forward. We will continue to do so during this period of consultation and will work with all parties to find the best outcomes for those people likely to be affected within the company."

Sales, marketing and aftersales operations will stay active at Longbridge, as well as the MG parts warehouse.

A new logistics team is also set to be created at the site, which will take responsibility for the management of vehicle movements and customs quality checks in the UK.

Mr Cheyne added: "With efficiency and flexibility both key to long-term market success, off-shoring vehicle production is a necessary business decision.

“Relocating to state-of-the-art overseas production facilities will allow faster access to product and help to meet ever-increasing customer demand, all while maintaining the highest levels of production quality.

“In addition, improving production scale efficiencies will support ongoing sales growth in the UK market – a key priority.”

The decision is the latest phase of MG's global development strategy to centralise production and create a "leaner business model".