Geely Group, one of China’s main independent carmakers, is considering bidding for Ford Motor Co’s Volvo Cars unit in alliance with an unnamed investment partner, a company spokesman confirmed today.
Geely, based in the eastern city of Hangzhou, is among several Chinese carmakers that reportedly have shown interest in the Swedish manufacturer, though company officials had earlier denied such reports.
Weng Xiaodong, director of Geely’s board of directors office, confirmed the reports in a phone interview.
Speaking at a briefing in Hong Kong on Geely’s first-half earnings report, chief executive Gui Shengyue said Geely’s parent company, rather than its listed unit, may bid for Volvo.
“Geely is an ambitious company and given current global changes, we really cannot miss out on this move,” the financial magazine Caijing quoted the chief executive as saying.
Since more than 90% of Geely’s capital is tied up in its listed company, the parent company lacks the wherewithal to manage the acquisition by itself.
But the company would join with either a government entity or some other institutional investor, Caijing reported.
Earlier reports had named state-owned Beijing Automotive Industry Holding as a potential bidder for Volvo.