SAIC is the latest rumored Chinese suitor for Volvo

GOTHENBURG, Sweden -- Shanghai Automotive Industry Corporation (Group) (SAIC), China's largest automaker, is reported to be discussing with Ford Motor the possibility of acquiring Volvo Cars.

The purchase of Volvo would give SAIC, as it is known, a more rounded portfolio of global brands as the company gears up for a major export drive over the next two to three years.

SAIC, which is partnered in China with General Motors and Volkswagen, owns a controlling interest in Ssangyong, the Korean utility-vehicle specialist, and a minority interest in GM Daewoo. And, through its recent government-sponsored acquisition of Nanjing Auto, SAIC also owns the rights to the MG name.

SAIC also has been rumored in the Chinese media as a potential buyer of the Hummer brand from GM.

Reports in several European publications, including Dagens Industri and Automotive News Europe, said Ford was "in talks" with SAIC about the potential acquisition of Volvo, the last significant brand in the U.S. automaker's now-dismantled Premier Automotive Group. Aston Martin was sold last year to a group of private investors led by David Richards, while Land Rover and Jaguar were sold earlier this year to India's Tata Group.

The report in Automotive News Europe also mentioned an unidentified "Russian investor" as a possible suitor for Volvo.

Meanwhile, in Sweden, Volvo Cars said it planned to cut 2,000 jobs as part of a broader cost-cutting effort. The division reported a pretax loss of $150 million in the first quarter.

SAIC is a partner in Shanghai Sunwin Bus with Volvo Bus Corp., which is part of the Volvo Group, and not acquired by Ford when it purchased the car-making operation in 1999.

What this means to you: It's looking more and more certain that Ford will spin off Volvo this year -- but the winning bidder remains to be seen.