Volvo could be sold to Chery Auto

Despite constant denials from Ford that its Volvo subsidiary is not up for sale comes new reports that China’s Chery Auto is considering bidding for the carmaker. Chery now joins a handful of other firms, including Renault, Shanghai Auto and Dongfeng Motors, as parties rumored to be bidding for Volvo.

The news of Chery’s bid comes from China’s Caijing business magazine, which reports that Chery is yet to reach any agreement or applied for permission from the government. A spokesman for Chery has since denied the rumor, but inside sources have told reporters that Chery had already contacted banks and private equity firms about financial backing for a possible acquisition.

Chinese carmakers still have the stigma of building unsafe vehicles, and many have proven to be very dangerous in international crash safety testing. Acquiring Volvo could provide the Chinese carmakers with new safety technology, helping their cars sell in Western markets.

Ford is yet to reveal full financial details for Volvo but industry experts estimate its value at around $4.4 billion.