Although most of the news lately has been on General Motors’ new car brand fire sale, Ford has been quietly shopping around its Swedish Volvo unit. News comes today that executives from China’s Beijing Automotive Industry Holding Corporation (BAIC) are touring Volvo’s Gothenburg, Sweden, headquarters, with the intention of deciding whether to make a bid for the automaker.
A team from BAIC is set to tour the headquarters and research and development facilities, according to the Wall Street Journal.
Analysts told Reuters that the Chinese are probably more interested in acquiring technologies and assets at a bargain price, rather than taking over entire automakers – not to mention the government is attempting to consolidate its own auto industry.
“Don’t take the reports seriously. Lots of so called Chinese interest are leaked by investment bankers and lawyers trying to drum up deals,” said Zhang Xin, an analyst with Guotai Junan Securities.
“BAIC doesn’t even have a in-house design car brand so far,” another unnamed source said. “How can anyone realistically expect it to take over and turn around Opel or Volvo?”
BAIC builds cars for Hyundai and Mercedes-Benz at joint venture facilities in China. It has long said it wanted to become a full automaker producing unique products, not just a constructor, and acquiring Volvo for a low price could be its way into the market, however.
06/11, 10:44 AM
posted by:
Borat
If BAIC does builds Benzes and Hyundais, why they can’t build a car that can be crashed successfully somewhere out side of China?
06/11, 10:53 AM
posted by:
johnnycanuck
“…for a 3 hour tour, a 3 hour tour.”
06/11, 12:26 PM
posted by:
global_lightning
Meanwhile, it looks like Koenigsegg will take over Saab. If BAIC buys Volvo, then I will sell my S60 out of spite.
06/11, 1:04 PM
posted by:
DenverGuy217
“Announcing a new car giveaway contest from Panda Express”
06/11, 1:33 PM
posted by:
casualobserver
I can’t think of anything more damaging to the Volvo brand image of safety than to be associated with Chinese quality and safety.
In terms of damaging a brand, this is about the same as if Hustler took over Disney.
06/11, 1:36 PM
posted by:
TomF
@casualobserver: right on. The idea of a Chinese Volvo is hilarious. That’s the end of THAT brand.
06/11, 1:45 PM
posted by:
F50
Since Fiat couldn’t get GM Europe, can’t they get Volvo instead, it might make Fiats/Chryslers safer and more reliable(?)
06/11, 1:48 PM
posted by:
johnnycanuck
casualobserver, your takeover scenario could add a whole new dimension to Bambi and Thumper.
06/11, 3:10 PM
posted by:
HoosierHero
“this is about the same as if Hustler took over Disney.”
I always thought Snow White was pretty hot. Though I don’t know about dwarf on dwarf action.
06/11, 3:22 PM
posted by:
KarLoveBoy88
Are they fvcking kidding? This has to be a joke. they must have Ashton Kutcher punking us on the other side. I wouldn’t drive **** built by the Chinese. And yes that includes Hyundai and Mercedes. I don’t like the fact that everything else is built there as it is. I can just imagine their new car warranties now, “3 year, 15,000 powertrain”. I need a dry drink. This is too funny to me.
06/11, 3:34 PM
posted by:
yarddog82abn
wtf?…………
06/11, 6:03 PM
posted by:
cab396
Does this mean we will see cross-bred Sweeds/Chinese (cars that is)? That should be a lovely race. Olaf…..you should be ashamed and shot!
06/11, 9:08 PM
posted by:
AutoCritical
When Ford had Volvo, and GM had Saab, they were pretty much on an ‘even playing field’ – if the Chinese took Volvo there really will be no more credibility in that brand (in comparison to Saab)