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Chinese carmakers bid for Volvo

(chinadaily.com.cn)
Updated: 2008-12-09 15:19

Chang'an Auto and Shanghai Automotive Industry Corporation (SAIC) are reported to be holding separate talks with Ford to acquire the US auto maker's prestigious Volvo brand.

Quoting an unnamed company source, China's National Business Daily reported on Monday about Chang'an Auto's interest in Volvo.

The UK's Sunday Mail reported that Ford approached SAIC for a second time. SAIC was one of the leading contenders to acquire Volvo in the previous round of talks which broke down over disagreements on price.

Bloomberg reported on Dec 4 that Ford may sell Volvo for $6 billion, close to the $6.4 billion Ford paid for it in 1999.

Currently the Chinese market only has the long-wheelbase Volvo S80L, which is built by a joint venture between Chang'an Auto and Ford.

According to National Business Daily, Xu Liuping, chairman of Chang'an Auto, made an overture to Ford at the Guangzhou Auto Show last month. Chang'an Auto has a long history of working with Ford, starting with a joint venture in 2001.

Volvo China's representatives declined to comment on any acquisition rumors. Representatives at Chang'an Auto and SAIC also declined to comment.