Shanghai, China – Chinese automaker Chery Automobile has contacted several European brands, including Volvo, with interest in acquisition, according to Automotive News Europe.
Earlier this year, Ford said it was reviewing its Volvo brand, including a possible sale. General Motors is also considering selling its Saab brand.
Chery already exports its vehicles to more than 50 countries, mostly in the developing world. In 2004, the company reportedly signed a contract with Malcolm Bricklin to import Chery vehicles into the U.S., and in 2007, Chrysler announced that Chery would build its Hornet subcompact model. Neither venture was successful.
Ford paid US$6.4 billion for Volvo in 1999. In January, the U.S. automaker reported that Volvo suffered a pre-tax loss of $736 million in the fourth quarter of 2008, mainly due to slow sales, currency exchange and net prices. Volvo reported break-even revenues for the same period in 2007.