Rus News Journal

Chineses apply for Volvo

Guangzhou wants to spend for purchase money from own IPO

One of the largest Chinese motor-car manufacturers - Guangzhou Automotive Industry Corp. - it is interested in purchase of division of cars of Volvo belonging to Ford. The potential buyer intends to propose after placing of the actions at stock exchanges of Hong Kong and Shanghai. Experts believe that easing of rather strong influence of Japanese motor-car manufacturers on Guangzhou Automotive could become obvious benefit from purchase of division of Volvo. Now at Guangzhou Automotive two joint ventures with foreign partners - Honda and Toyota.

Ford has got Volvo in 1999. Last year the American motorcar giant has suffered losses at a rate of 2,7 mlrd dollars, including from - for Volvo re-structurings. In March of this year of Ford has informed on the agreement with Indian Tata Motors about sale of two brands of a class a premium - Jaguar and Land Rover - for 2,3 mlrd Ford dollars earlier officially informed that is not going to sell division of cars of Volvo. However, according to sources, the American motor-car manufacturer has charged to investment banks search of potential buyers of the Swedish company.

interest to Volvo besides Guangzhou Automotive Industry Corp. Have shown as well other large Chinese manufacturers - Dongfeng Motor Corp. And Geely Automobile Holdings. But, as representative Geely has informed, the company meanwhile does not intend to hurry up with the decision concerning the transaction. One of the reasons of such indecision is a possible price. Other reason, according to the source, reflexions about that, how much successfully a brand will be entered in portfolio Geely. In Dongfeng Motor have refused comments on a theme of, whether negotiations from Ford are carried on.

Last decade the automobile industry of China endures active lifting. In the end of the last year the country became the second market in the world on sales volume of cars - 8,8 million pieces. For the further strengthening of the local market there is one simple way - absorption of foreign motor-car manufacturers. Nevertheless, according to analysts, acquisition of the companies can become for the Chinese motor-car manufacturers a little premature step. In - the first, the Chinese autoconcerns have not enough experience of dialogue with trade unions, and in - the second, for them there can be too high expenses on the personnel with which the western manufacturers are compelled to be reconciled.

other Chinese motor-car manufacturers also are interested in purchase of the western companies. So, SAIC Motor Corp. And FAW Group Corp. Carried on negotiations with German Daim­ ler for possible purchase of Chrysler. As a result the American division which brands of Dodge and Jeep concern, has got to investment fund Cerberus Capital Management for 7,4 mlrd dollars While only one of the Chinese manufacturers managed to buy the foreign ­ company. In 2005 SAIC Motor Corp. Has got ­ 48,92 % of actions South Korean SsangYong Motor for 500 million dollars

Kendi, Kachun