MG Rover is buying the assets of the Italian subsidiary of Qvale Automotive Group - which manufactures the Mangusta sports car - and creating a new luxury high performance sports car.

Using the outstanding chassis and engineering of the Qvale project, coupled to a 4.6-litre V8 powertrain, MG Rover has unveiled the first design sketch of the new car code-named MG X80, pictured above, and styled by MG Rover's world renowned design director Peter Stevens.

The MG X80 will be launched in 2002, giving the MG brand a world-class product in the high-performance luxury sports car sector.

Both coupe and roadster versions are planned with manual and automatic transmissions.

The new car will be positioned above the existing MGF roadster, the new MG sports saloons and sports-wagon that will be launched this summer.

Kevin Howe, chief executive of MG Rover, said: "The MG X80 will be an excellent fit at the top of our family of MG cars. It also provides an opportunity to look at markets where we are not currently represented. In particular the USA market, the world's largest sports car market, where we can now seriously evaluate the full potential for the MG brand."

Bruce Qvale, president of Qvale Automotive Group, said: "MG Rover showed an interest in our Mangusta car project in Modena and we have agreed a good deal for both sides.

"The power of the MG brand now takes the project forward on a global basis."