Chinese automakers Chery, Geely and Changan might cast a bid when Ford Motors sells off Volvo this month.
Liang Dongmei, Caijing 6 February 2009
Three Chinese automakers are likely to be among the international bidders for Volvo Cars, which has been put on the auction block by its U.S. owner Ford Motor Company.
An industry source told Caijing that Chery Automobile Co., Geely Automobile Holding Company and Changan Automobile Group are gearing up to bid on Volvo.
However, Geely’s Vice President Wang Liang denied any intention to bid for Volvo, and a Changan spokesman said that, despite a joint venture the company’s had with Ford since 2001, senior management has revealed no plan for purchase. Chery could not be reached for comment.
In December, Ford announced on its website that it was considering selling Volvo Cars. It has since scheduled a meeting for bidders in London on Feb 9.
At this point, it is too early to speculate the outcome of the bid, the source said, since the seller will make the final decision.
Ford’s motive for the sale is clear. The U.S. automaker posted US$ 14.6 billion losses in 2008, marking its third consecutive annual loss. Moreover, as of the end of 2008, it reported US$ 24 billion in cash flow – enough sustain operations for a mere six months.
Ford earlier sold its two luxury brands Land Rover and Jaguar to Indian conglomerate Tata Group for US$ 2.65 billion.
1 comment:
Chinese Carmakers Bidding for Volvo
Chinese automakers Chery, Geely and Changan might cast a bid when Ford Motors sells off Volvo this month.
Liang Dongmei, Caijing
6 February 2009
Three Chinese automakers are likely to be among the international bidders for Volvo Cars, which has been put on the auction block by its U.S. owner Ford Motor Company.
An industry source told Caijing that Chery Automobile Co., Geely Automobile Holding Company and Changan Automobile Group are gearing up to bid on Volvo.
However, Geely’s Vice President Wang Liang denied any intention to bid for Volvo, and a Changan spokesman said that, despite a joint venture the company’s had with Ford since 2001, senior management has revealed no plan for purchase. Chery could not be reached for comment.
In December, Ford announced on its website that it was considering selling Volvo Cars. It has since scheduled a meeting for bidders in London on Feb 9.
At this point, it is too early to speculate the outcome of the bid, the source said, since the seller will make the final decision.
Ford’s motive for the sale is clear. The U.S. automaker posted US$ 14.6 billion losses in 2008, marking its third consecutive annual loss. Moreover, as of the end of 2008, it reported US$ 24 billion in cash flow – enough sustain operations for a mere six months.
Ford earlier sold its two luxury brands Land Rover and Jaguar to Indian conglomerate Tata Group for US$ 2.65 billion.
Post a Comment