Ford in talks with China Changan over Volvo sale
Ford is in discussions about selling off Volvo to Changan Automobile, its Chinese joint venture partner. According to state media, Xu Liuping, Changan's president, participated in discussions with Ford and Volvo during an auto show last month in Guangzhou. No details of the talks were given, but an unidentified Changan executive was quoted as saying there was a chance for a deal. Ford is keen to divest itself of Volvo as it negotiates a multi-billion dollar bailout from the US government. General Motors is equally keen to offload Saab. Industry sources say US auto companies have approached several Chinese carmakers about possible asset sales. However, deals would be difficult to reach because of the risks involved following recent slowdowns in both the US and Chinese auto markets. Ford's joint venture with Chongqing Changan Automobile, the listed arm of Changan, produces Focus mid-sized sedans.
Source: Reuters
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