BAIC, Geely still interested in Volvo takeover

Shanghai, July 1 (Gasgoo.com) China's Beijing Automotive Industry Holding Corp (BAIC) and Geely Automobile Holdings remain interested in Ford Motor's Volvo car unit, Reuters reported yesterday, citing insiders. In addition, a "Western industrial group" is also a potential bidder.

Geely Auto, which has already visited Volvo in Sweden, plans to make a fresh visit soon, and Geely representatives are likely to visit Volvo this week, sources told Reuters. Ford is also hopeful that a consortium of Scandinavian investors may come together to lodge a proposal.

John Gardiner, a spokesman for Ford Europe, said: "We're still in discussion with a number of parties concerning the future of Volvo. No final decision has been made at this stage and the process will take some time to unfold."

Ford put the money-losing Volvo cars unit up for sale in December, as it looked to cut costs and raise cash amid industry-wide record-low vehicle sales. Bankers say the complexity of disentangling Volvo cars from its parent means the process is likely to take a long time.

The Hong Kong-listed Geely Auto said on May 7 that it had not submitted, and had no plans to submit, any bid for a takeover of Volvo. However, the denial would not necessarily rule out a bid from its parent Geely Holding Group, whose owner Li Shufu is chairman of both firms.

The Wall Street Journal reported on June 10 that BAIC had expressed interest in Volvo and the Beijing automaker's executives were set to visit Volvo headquarters in Gothenburg, including a tour of its R&D and manufacturing facilities.