China Looks To Sweden For Way Into European Market

Two Chinese suitors are seeking to invest in Swedish automotive companies Volvo and Saab.

Geely Automotive said it wants to bid for Ford Motor Co’s Volvo, while press reports in Hong Kong said SAIC Motor Group is thinking about taking what was described as a “passive” stake in Saab, by joining up with Koenigsegg Group. Koenigsegg is currently negotiating the purchase of Saab from GM Europe. SAIC is a GM partner in China.

Ford is expected to decide within a month if it is going to finally kiss Volvo goodbye.

Volvo lost a pre-tax €231 million in 2009’s second quarter, almost twice the loss of the same period last year. In the quarter Volvo sales revenues dived 32.6 per cent.