Geely has no plans to buy Volvo

A spokesman for Geely Automobile Holdings said the company had no plans to buy the Volvo brand from Ford Motor company, Reuters reported. Media sources had reported early last week that Ford was looking to sell its Volvo unit to Geely in an effort to avoid a US government bail out. Industry sources have said that US automakers approached a number of potential asset buyers in China, including SAIC Motor. The deals are considered unlikely both due to risk and because the Chinese auto industry is also facing declining sales. Chang’an Automobile Group, Dongfeng Motor Group and Chery Automobile said they are monitoring the situation but would probably not purchase any assets from US automakers due to the cost of turning around a global brand and the companies’ own limited international exposure. Geely is a mid-sized car manufacturer in eastern China, making mostly small sedans. It owns about 23% of Manganese Bronze and 51% of a Shanghai-based joint venture with the UK company.