Just a few days after both Geely and Dongfeng denied rumours about their interests in foreign car companies, Geely have now come out and stated that they are watching situations unfold and are open to opportunities that may arise:
Geely Automobile’s chairman said Friday the Chinese automaker was open to possible overseas deals, apparently softening his stance a day after saying his company was not keen to buy foreign brands.
Li Shufu, chairman of one of China’s biggest privately owned auto manufacturers, told reporters his company was following the turmoil in the industry, and studying the restructurings, potential bankruptcies and possible mergers.
“Geely is paying close attention,” Li told reporters on the sidelines of China’s annual legislative session.
“If there is an opportunity we will participate” in those events, as long as it is in the interests of Geely’s shareholders and the company’s long-term development, he said in remarks partly read from a written statement.
……For months, Geely has denied persistent rumours emanating from Hong Kong finance circles that a deal was close. But the Wall Street Journal cited unidentified “people familiar with the situation” as saying that a bid remained on track.
This doesn’t necessarily mean they’re in the group of six companies Saab are currently talking to, but they may be.
The fact that they’re being so open about their interests is a significant change. Personally, I just hope it’s a chance that effects Volvo, not Saab.
UPDATE: Chinese company Chery has apparently received the go-ahead from the Chinese government to enter into the Volvo bidding. Again, this is of no consequence for Saab, but it just shows who the players are.
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