Chinese Government Approves Chery's Plan To Buy Volvo
China’s top economic planner has approved of Chery’s plan to buy the Volvo brand from Ford Motor, Gasgoo says. The report is not confirmed yet by Chery Auto. However, Gasgoo is very close to Chery.
According to Chinese media reports, Dongfeng Motor Co. has also submitted its Volvo-bidding plan to the National Development and Reform Commission (NDRC). The company’s spokesman denied the reports.
On Feb. 12, Chery Auto president and CEO, Yin Tongyao, said that his company would not rule out the possibility of buying a troubled European auto brand. Volvo was believed to be one of the choices.
Chery Auto received a 10 billion yuan ($1.47 billion) loan to fund its global growth from Export-Import Bank of China (China Eximbank) in December 2008. The company was also granted the flexibility of a credit line by the bank.
Ford put Volvo up for sale late last year to raise cash, but has found little interest in the brand, because many potential buyers are facing similar crisis and the nearly $6 billion needed for buying Volvo is a prohibitive price for most carmakers.
The report has been repeated on China Daily. China Daily is the English speaking organ of the government news agency Xinhua.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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I love the articles on China, they come with the best ads!
Dilbert: "They didn’t use my money, I don’t care." Actually, if you think Trade Defecit, and unless you have avoided buying anything bearing a Made in China label, then, sadly, they have been using your money... (besides, what do you think allows the Chinese to increase their (disclosed) military budget by 15% YOY YAY?
I actually really love my 08 XC70, and it's my second Volvo in a row. I don't know if it's fair, but this news doesn't make me want to make it three.