http://www.chinacarfans.com WE OBSISSEVELY COVER THE CHINESE AUTO INDUSTRY Mon, 07 Sep 2009 07:03:43 +0000 en hourly 1 http://wordpress.org/?v=3.0 http://www.chinacarfans.com/2009/03/09/chinese-automaker-may-be-the-buyer-of-last-resort-for-ford-volvo/ http://www.chinacarfans.com/2009/03/09/chinese-automaker-may-be-the-buyer-of-last-resort-for-ford-volvo/#comments Mon, 09 Mar 2009 01:38:50 +0000 Chief Editor http://www.chinacarfans.com/?p=472

Ford Motor needs money and is almost certainly willing to sell Volvo to add cash to its balance sheet. A Chinese car company may be willing to oblige. According to The Times, “Geely Automotive, a Chinese car manufacturer, has appointed NM Rothschild to advise on a possible bid for loss-making Volvo.”

China is one of the few places with potential buyers of Western auto company assets. The central government can make capital available since China has built up a tremendous balance sheet of its own after having years of trade surpluses.

Because of the wealth of the Chinese government, it can afford to play a long-term game that other governments or private enterprises cannot. It may be willing to wait out the revival of the car markets in the US, UK, and EU and be one of the few that has enough capacity and capital to quickly meet the demand of an improving economic environment. Even if it takes two or three years, China has the time and the money.

From: Daily Finance

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]]> http://www.chinacarfans.com/2009/03/09/chinese-automaker-may-be-the-buyer-of-last-resort-for-ford-volvo/feed/ 0 http://www.chinacarfans.com/2009/03/04/government-push-automakers-to-buy-overseas-rivals/ http://www.chinacarfans.com/2009/03/04/government-push-automakers-to-buy-overseas-rivals/#comments Wed, 04 Mar 2009 02:21:15 +0000 Chief Editor http://www.chinacarfans.com/?p=413

Chinese automakers has been warned by government many times to acquire assets from struggling overseas rivals, Shanghai Securities News reported on Monday.

“Chinese automakers are not strong enough to participate in cooperation with big global players, ” said Chen Bin, head of the industry co-ordination department of the National Development and Reform Commission of China.
The report added that Chinese automakers Geely, Changan, and Chery have been approached by many overseas rivals in recent months.

Chery said last month it would not rule out the possibility of buying a troubled European auto brand, while Changan and Dongfeng are expected to place indicative bids for Volvo Cars in April, according to Reuters.

source: Shanghai Securities News

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• Chery Auto heads to Vietnam (1)
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