Geely teamed up with the State for Volvo bid?

Geely Automobile | Ash | September 9, 2009 at 5:30 pm

This is a new rumor to us:

HONG KONG (MarketWatch) — Shares of Geely Automobile Holdings Ltd. rose Wednesday in Hong Kong trade, adding to a 3% gain the prior day, after reports its parent may be involved in a bid for Swedish car brand Volvo with the backing of a state-owned investment company.Geely Automobile Chief Executive Gui Sheng Yue said Tuesday that parent Geely Group Ltd. is too small to bid for the Ford Motor Co. unit on its own and would look to teaming up with a state-owned entity for the offer, according to a report by Dow Jones Newswires.Gui offered no hints on how much the Zhejiang-based Geely Group — China’s largest closely held manufacturer of car by sales, according to The Wall Street Journal — was willing to offer for Volvo.

News of the potential bid followed the release of much-improved first-half earnings results from Geely Automobile.

The company reported that net income for the six months through June more than doubled to 595.9 million yuan ($87 million) from 242.82 million yuan a year earlier. Geely’s unit sales during the period were nearly 138,000, an on-year rise of 29%.While Gui did not provide details on which state-backed entity could aid Geely’s bid, he said the group stood to benefit from Volvo technology, according to reports.

From MarketWatch

While Gui did not provide details on which state-backed entity could aid Geely’s bid, he said the group stood to benefit from Volvo technology, according to reports.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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