China making of Volvo unaffected by brand sale

Shanghai, December 3 (Gasgoo.com) Source from Ford (China) Co and Volvo China said production of Volvo cars at Chongqing plant will not be affected by the possible sale of the brand by its US parent.

Volvo Car's Chinese partner, Changan Ford Mazda Automobile (CFMA) will start production of Volvo S80 next year, and this plan is unlikely to be affected by the change, Volvo China stated.

CFMA currently makes the Volvo S40 at its Chongqing plant in Southwest China. Sales of the China-made car model reached 3,181 units in the Chinese market in the first half of 2008, inching up by 1.4 percent year on year.

On the other side of the Atlantic, Ford submitted today detailed plans to Congress to ask for loans. In it Ford reaffirmed that it is "exploring strategic alternatives for Volvo" in an effort to help its overall liquidity. 

A Bloomberg report cites an industry insider as saying Chinese automakers are among possible bidders for the European luxury brand,

"None of the European manufacturers would have a need or a likely interest in Volvo," said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, "The only thing I could see is an Indian company or perhaps a Chinese company."

But the report also said seven out of 10 Swedes back a temporary government takeover of Gothenburg-based Volvo if Ford can't secure the unit's future.