http://www.autoblog.com/2009/03/06/r...to-purchase-v/If, like us, you've been following the Volvo saga pretty closely, you'll remember that several Chinese companies are considered to be among the top bidders for the Swedish automaker when Ford officially opens the bidding. Although Geely has said they aren't interested, that didn't rule out other Chinese outfits.
Well, today we have word via Chinese news reports that Chery, for one, has been given the greenlight to enter the Volvo lottery by the Chinese government. Other interested parties are rumored to be Dongfeng Motor Group and Chongqing Changan Automobile Co, along with a "European constellation," whatever that means.
Ford is looking to recoup the bulk of its initial $6.45 billion investment when it sells Volvo, so that might put it out of Chery's league. But who knows? Chery Auto just got a 10 billion yuan ($1.47 billion) loan to help it grow globally and was also given a line of credit by the bank, so only time will tell.
in other news, Tata Motors of India owns Jaguar and Land Rover.
Looks like it's time for the Chinese automakers to go shopping, which is a WAY better alternative to bailouts.
Mar 7th, 2009 12:08 AM #1
- Join Date
- Jan 27th, 2007
Chery (Chinese automaker) bid to purchase Volvo
Sponsored Links - Join the RedFlagDeals.com community and remove this ad.
Mar 7th, 2009 01:06 AM #2
- Join Date
- Feb 11th, 2007
If they keep up volvo's reknown quality, no complaints whatsoever.
Mar 7th, 2009 06:29 AM #3
- Join Date
- Nov 28th, 2007
Ford is asking billions to recuperate their original purchase, Chery only has a billion I believe. There is two other chinese manufacturers also bidding.
Mar 7th, 2009 10:29 AM #4
- Join Date
- May 25th, 2008
I'm considering a 2007 V70, and I think it would be good news for me if a Chinese company bought them. I'd get Swedish-designed parts manufactured cheaply in China.
The '08 V70 seems to have teething problems, but this always happens when Volvo introduces a new vehicle, especially with a new drivetrain.
Mar 7th, 2009 11:51 AM #5
Saab boss identifies 5 potential bidders
Chinese deny interest
March 4, 2009 - 3:28 am ET
GENEVA -- Saab aims to identify a new owner for the brand within two months, Managing Director Jan-Ake Jonsson said.
"There are about five we want to talk to. There are a couple more we are also looking into,” Jonsson told Automotive News Europe at the auto show here. "We should see which candidates are serious in the next week and a half,” he said.
Subscribe to Automotive News
Jonsson did not specify which parties are interested in buying Saab.
China's Geely Automobile and Dongfeng Motor Group today denied that they are interested in Saab after sources had told Reuters that the two companies are among several potential bidders.
A senior Geely executive said that his company had not held any talks on the Saab brand and the carmaker is not interested in pursuing foreign brands.
Media reports have also said that Geely is in preliminary talks with Ford Motor about the sale of the automaker's Volvo car unit, although a Geely spokesman said his company had no plans to buy Volvo.
A spokesman from Dongfeng said the company had not held internal discussions about a possible bid for Saab, adding he is unaware of any interest by his company in bidding for the brand.
Reuters said private equity firms and representatives of retired Swedish workers have also expressed interest in Saab.
Jonsson said Saab is working with advisors from Deutsche Bank this week to identify a buyer.
Saab is speeding up its search for a new owner after General Motors said it will end ownership of the brand on January 1 2010
“I hope in a month or two we will have at least some agreement with somebody,” Jonsson said.
He added: "The Swedish government wants to know what the future ownership structure is and General Motors wants to sell Saab. We have to accelerate the process."
GM has not yet begun an official auction for the Swedish brand but expects to have preliminary financials for Saab ready in a few weeks, according to Reuters sources.
Saab sought protection from creditors last month to survive the current economic downturn and buy time to find a new owner.
GM Chief Operating Officer Fritz Henderson said in Geneva on Tuesday that the automaker has already funded the development of two upcoming Saab models, the 9-5 and 9-4x.
Henderson said GM was not willing to retool Saab's Trollhattan plant in Sweden for 9-5 production.
Sweden's government has offered to consider loan guarantees for Saab if the brand can find a new owner to underwrite its business plan.
GM bought 50 percent of Saab in 1990 for about $700 million. It paid $125 million and assumed debt for the remainder of the unit in 2000.
Saab sales fell 35 percent in 2008 -- any likely buyer is expected to take over the brand at a heavy discount.
Saab said it lost about $340 million in 2008 and projected a similar loss this year due to slack demand, an ageing vehicle line-up, overcapacity and high costs.
i'm confused. Are the Chinese interested or not? too many different sources.