Chinese based Geely Automobile Holdings Ltd., whose parent company is the preferred bidder by Ford to acquire Volvo, has let it be known that they intend to continue to seek acquisition opportunities and are more than open to joint projects to develop new technologies.
The company was formerly in talks with GM about acquiring Saab, but no progress was made. An official at Geely has mentioned that the poor condition of the American and European auto markets have created prime purchasing opportunities for the Chinese company known for their economy vehicles.
“I had looked into Saab, but GM did not come back to us. Maybe they find our terms were not good enough,” said Lawrence Ang, an executive director of Geely Auto. Asked whether the talks could be revived, he replied “If they could not find a buyer, they may come back to us, who knows?”
Geely Auto, which was able to raise $334 million dollars earlier this year throughout the issuance of convertible bonds, plans to increase capital spending by 25-43 percent next year, and aim to sell 400,000 vehicles, 100,000 more than their 2009 sales target.
– By: Stephen Calogera