GM Holden denies sale talks with Dongfeng

Shanghai, July 21 (Gasgoo.com) An executive at Chinese car maker Dongfeng Motor Corporation says his company has made contact about buying Holden from its distressed American parent, General Motors, prompting immediate denials from Holden and the Australia Federal Government, the Sydney Morning Herald reported.

Dongfeng's vice-president Li Shaozhu revealed his company's interest to buy Holden last Thursday when taking the Trade Minister, Simon Crean, and Industry Minister, Kim Carr, through his factories in Wuhan.

"We've been paying attention and there have been contacts,” Mr Li told the newspaper when asked about whether his company had considered buying an Australian car maker like Holden.

A spokesman for Holden strongly denied that any deal with the Chinese company was underway. And Industry Minister Kim Carr further refuted sales talks in the Australian car industry, claiming "the Australian subsidiaries of Ford, General Motors and Toyota are not for sale."

Chinese carmakers are eyeing Opel, Saab, Hummer and other GM brands that have been put up for sale. Beijing Automotive Industry Holding is competing with Canadian car parts maker Magna International to acquire Opel, and Chinese automaker Geely has reportedly begun talks to buy Sweden's Volvo brand from Ford.