According to Swedish daily “Dagens Industri”, Chinese companies Dongfeng Motor and Chang An Automobile are interested in the acquisition of Volvo. These companies, together with Saic and Faw, are part of the Chinese Government’s auto company selection as brands that drive consolidation in the sector and make competitive products. They produce about two million vehicles a year.
Volvo has already gained the attention of Chinese manufacturer, Geely, in the past, but the situation is currently very unclear. Volvo is currently waiting on the decision from the European investment bank group on the loan of 445 million euros. Come Easter, the future should be clearer.
Meanwhile, Yang Jian from Automotive News China is convinced that Chinese manufacturers are not ready for the purchase of a company like Volvo, despite their large financial capacity. Problems to arise would be the management of the company, controlled by the Chinese state, and managers not competent in global operations.
© Source: eurocarblog
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