HONG KONG (Reuters) - Geely, China's No.1 private carmaker, said
on Thursday that its parent company has strong support from the
Chinese government to acquire Ford Motor's Volvo unit, and expects
robust growth for China's auto industry in 2010, also with help
from Beijing.
'Without government support, the (Volvo) deal could not be
done,' Gui Shengyue, chief executive of Geely Auto, said at a media
briefing in Hong Kong on New Year's Eve.
Last week, Ford said it was nearing an agreement to sell Volvo
to Zhejiang Geely Holding Group, underscoring China's arrival as a
major force in the global auto industry.
Gui said he believed Zhejiang Geely Holding Group, parent of
Hong Kong-listed Geely Auto, had financial support for the
acquisition of Volvo.
Reuters reported on Dec. 1 that Geely was seeking at least
U.S. $ 5
BILLION in loans to finance its
U.S. $ 1.8
BILLION bid for Volvo, and that three major
Chinese banks including one policy lender had agreed to offer the
money.
Geely Auto would be looking for opportunities to participate in
the Volvo project once the acquisition is closed, Gui said.
'The ultimate goal is to inject Volvo into the listed company,'
said Gui. However, he added that he could not predict when that
goal would be realised.