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Chinese automaker may be the buyer of last resort for Ford Volvo

212  h=x volvo 3 Chinese automaker may be the buyer of last resort for Ford Volvo

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

Chery was approved to bid for Ford Volvo

167  h=x chery logo 5 Chery was approved to bid for Ford Volvo

China’s top economic planner has approved of Chery Auto’s plan to buy the Volvo, Shanghai-based Oriental Morning Post reported today.

The media report added that another Dongfeng Motor has also submitted its Volvo-bidding plan to the National Development and Reform Commission (NDRC). However, the Chery’s spokesman denied it.

Ford put Volvo up for sale late last year to raise cash, but has found little interest in the brand, because many potential buyers are facing similar crisis and the nearly $6 billion needed for buying Volvo is a prohibitive price for most carmakers.

source: gasgoo.com

Breaking: Chang’an and Dongfeng to bid for Ford Volvo

199  h=x volvo Breaking:  Changan and Dongfeng to bid for Ford Volvo

Three interested companies may place indicative bids for Ford’s up-for-sale Swedish brand Volvo Cars in April, according to Swedish newspaper Dagens Industri (DI).

Reuters noted that DI quoted unnamed sources as saying that the three bidders include Chinese carmakers Dongfeng Motor Group and Chongqing Changan Automobile Co, and “a European constellation”.

“Indicative bids are to be expected around the Easter weekend,” the paper said. The expected purchase price for Volvo is believed to range between SEK20bn ($2.29bn) and SEK25bn ($2.86bn), it reported.

The paper also said the European Investment Bank (EIB) was expected to grant Volvo a 5 billion Swedish crowns ($568 million) loan in the near future. Volvo applied for the loan last month.

Volvo Cars is a separate company from Gothenburg, Sweden-based Volvo AB, the world’s second-largest truck maker. Dongfeng Motor Corp is China’s third-biggest automaker while Changan Auto Group manufactures Volvo cars in China in a partnership with Ford.

source: DI

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