Chinese firm interested in Volvo

Ben Marlow

THE Chinese firm that part-owns the manufacturer of London’s black cabs is preparing a bid for troubled Swedish carmaker Volvo.

Geely Automotive, a Chinese car manufacturer, has appointed NM Rothschild to advise on a possible bid for loss-making Volvo, which has been put up for sale by its ailing American parent Ford.

Geely owns 23% of Manganese Bronze, the maker of London’s famous black cabs, and 51% of a Shanghai-based joint venture with the British company. The news that Geely is serious about bidding for Volvo will come as a surprise after Geely’s chairman, Li Shufu, ruled out a move for the Swedish company last week. It is understood that Geely is looking for a private-equity firm to provide financial backing.

Bankers believe there is another party interested in buying Volvo. One rumour emanating from Sweden is that a former chief executive of the company is working on takeover plans. It could also be another Chinese firm.

We buy most things made in China anyway so what else is new.