Geely eyes full ownership of Volvo, not stake

• Source: Gasgoo.com
• [13:38 September 09 2009]
• Comments

Chinese carmaker Geely Auto said its parent is involved in a bid for Ford Motor's Volvo Cars unit, and the bidding may need help from a state-owned investment firm, media reported today.

Gui Sheng Yue, chief executive of Geely Auto, told reporters yesterday that Geely Holding Group, who wants full ownership of Volvo, rather than a stake, is too small to acquire the Swedish car brand alone and so will likely team up with a state-owned investment company if it enters the bidding.

Mr. Gui declined to say how much Geely Group could offer for Volvo, because changing economic conditions could affect the Swedish unit's valuation. In July Ford slowed the bidding process in an effort to get a better price for the brand.

Ford said last month it was still in talks with several potential buyers for Volvo. Sources previously said there were three bidders for Volvo: Geely Group, Beijing Auto and a group of investors in Europe.

Zhejiang-based Geely Group, China's largest privately owned auto maker by sales, already has injected 90 percent of its assets into its Hong Kong-listed unit Geely Automobile Holdings Ltd. (Geely Auto).

Mr. Gui said the Volvo deal would offer a good opportunity for the Geely Group to expand its international profile and overseas sales growth.

Geely Auto may buy Volvo from its parent eventually if Geely Group succeeds in bidding for the Ford unit, he added.