Volvo to go to the Chinese??

[vztrt]

Seems Beijing Auto is biding on Volvo after no luck with Opel.

http://business.theage.com.au/busine...0611-c47j.html

Chinese car maker eyes Volvo
June 12, 2009 - 11:03AM

Beijing Automotive, a closely held Chinese car maker, may bid for Ford's Volvo unit, according to a person familiar with the discussions.

Beijing Auto, which failed in a bid last month for General Motors' Opel business, is expected to send executives this week to Volvo's Gothenburg, Sweden, headquarters, said the person, who did not want to be identified. The Chinese delegation is to tour Volvo's factories and review its books, the person said.

Ford is shedding its international luxury marques to focus on rebuilding its namesake brand. Last June, the second-largest US car maker sold UK-based Jaguar and Land Rover to India's Tata Motors for $US2.4 billion. Ford sold its Aston Martin line for $US931 million in May 2007 to a group of investors.

"There are a number of interested parties and there are continuing discussions," said John Gardiner, a Ford spokesman based in Germany. "It will take some time to unfold."

Geely Holding Group, China's biggest closely held car maker, remains the front-runner among companies interested in acquiring the Swedish car maker, said the person familiar with the process. Geely executives toured Volvo's factories and reviewed its books in April, the person said.

Geely made its interest in Volvo known to Ford a year ago, before the Dearborn, Michigan-carmaker put its Swedish unit up for sale, people familiar with the matter have said.

$US2 billion price tag

Ford is seeking about $US2 billion for Volvo, less than a third of what it paid for the maker of sedans and station wagons a decade ago, two people familiar with the process have said. Ford, the only major US car maker not in bankruptcy, is seeking to raise cash to avoid requesting government assistance. In December, the car maker put Volvo up for sale as the brand's US sales slid 31 per cent.

Beijing Auto, which has joint ventures to make vehicles in China for Hyundai and Chrysler's Jeep, submitted a letter of interest in GM's Opel unit May 21, a day after the deadline for bids, people familiar with the proposal said at the time. GM and the German government selected Magna International, one of the three original bidders, on May 29.

Beijing Auto's interest in Volvo was reported earlier by the Wall Street Journal.

Bloomberg