Shanghai, March 6 (Gasgoo.com) Sources revealed yesterday that China's top economic planner has approved of Chery Auto's plan to buy the Volvo brand from Ford Motor, Shanghai-based Oriental Morning Post reported today. But the report is not confirmed yet by Chery Auto.
The media report added that another Chinese carmaker Dongfeng Motor has also submitted its Volvo-bidding plan to the National Development and Reform Commission (NDRC). However, the company's spokesman denied such a move yesterday.
Recently, several Chinese automakers such as Changan, Geely, Chery and Dongfeng have been reported to be in talks with U.S. auto giant Ford Motor for buying its Volvo brand in Europe.
In Feb. 12, Chery Auto president and CEO Yin Tongyao said that his company would not rule out the possibility of buying a troubled European auto brand. Volvo is believed to be one of the choices.
Changan Auto, Geely Auto and Dongfeng Motor are also rumored as potential buyers of Volvo. But Geely chairman Li Shufu denied such a plan yesterday, saying Geely has "no interest" in buying assets from overseas automakers this year as the company battles tumbling domestic demand.
Chery Auto received a 10 billion yuan ($1.47 billion) loan to fund its global growth from Export-Import Bank of China (China Eximbank) in December 2008. The company was also granted the flexibility of a credit line by the bank.
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 (via Autoblog.com);
http://www.gasgoo.com/auto-news/1009554/Chery-Auto-given-greenlight-to-buy-Volvo-brand.html
