Lumena chairman may join Hummer bid as BAIC targets Volvo

It’s been a busy week in China’s auto industry. Two weeks, if you count the still-bizarre bid for GM’s Hummer by Sichuan Tengzhong, everyone’s favorite heavy industrial machinery company. Now it looks like Tengzhong may not be going it alone: The chairman of Lumena Resources, a domestic chemical manufacturer, has said he may join the bid in a capacity separate from Lumena’s core business. No details on exactly what role he will play. In a busy week, few have been busier than Beijing Automotive Industry Corp (BAIC), which we heard yesterday was mulling a bid for GM’s Saab. Now, reports suggest that BAIC may be going after Ford’s Volvo. Whether BAIC is planning to take over the entire Swedish auto sector, or if one of the reports is erroneous (or if the whole thing is just a huge misunderstanding) remains to be seen. Also in the running for most newsworthy sector this week is commodities, specifically iron ore. China Minmetals increased its offer for OZ Minerals following an abortive attempt by Macquarie to convince OZ shareholders to reject the Minmetals deal. Meanwhile, fears that Chinese steel mills won’t be able to get the iron ore price contracts they’re hoping for have pushed spot prices for ore delivered to China to near their highest levels in four months.