Geely mulls more acquisitions, eyes Volvo China

Shanghai, December 7 (Gasgoo.com) China's Geely Auto (0175.HK), whose parent is bidding for Ford Motor's Volvo Cars, said today that it will continue to seek acquisition opportunities and is interested in auto parts projects and Volvo's China operations, media reported.

Geely is always on the lookout for potential acquisitions, especially makers of car engines, said Lawrence Ang, an executive director of Geely Auto. He expects more acquisition opportunities to arise in the battered U.S. and European auto markets next year.

Geely had been in talks on General Motors' Saab unit, but without result. Ang didn't rule out the possibility of the talks' revival. He added that Geely is also interested in the Chinese operations of Volvo Cars, which produces Volvo S80L and S80 models at Changan Ford.

Zhejiang Geely Holdings Group, named by Ford in late October as the preferred bidder for its Swedish unit Volvo, is working with Ford on details of the deal and seeking $1 billion in loans from Chinese banks to finance its $1.8 billion bid.

Geely Auto also aimed to lift capital spending by 25-43% next year to about 1 billion yuan, initially for expanding capacity and building a new model platform, Ang said.

The car company was optimistic about China's auto market and aimed to sell 400,000 vehicles next year, up from an expected 300,000 units for 2009, he said.