Chery Auto has no plan to buy U.S. auto assets

SHANGHAI, Dec 9 (Reuters) - Chinese car maker Chery Automobile Co has no plan to buy U.S. auto assets, its chairman was quoted as saying by state media on Tuesday.

Chery, which secured a 10 billion yuan ($1.45 billion) bank loan from the China Import-Export Bank this week, will use the money to improve its product quality rather than buying auto assets in the United States, Yin Tongyao told the Shanghai Securities News on the sidelines of a company event.

Ford Motor Co, which owns Volvo, and General Motors Corp, owner of Saab, are trying to sell those units as they seek a multi-billion dollar government bailout, but so far Chinese auto makers have not expressed an interest in buying.

Dongfeng Motor Group Co, China's third-largest automaker, is monitoring the situation of Detroit's troubled automakers, but a source with direct knowledge of the matter told Reuters last week it is too early to say if it would be interested in buying any of their assets.

Chery is expected to ship more than 140,000 vehicles this year, mostly to the emerging markets, Yin was quoted as saying. It sold 119,800 units overseas in 2007.