Ford in talks to sell Volvo to China's Changan

[DainBramaged]

Ford Motor Co. , shedding assets to raise cash, is in talks to sell its Volvo car business to China partner Changan Automobile Group, the National Business Daily reported Tuesday.

Changan president Xu Liuping held discussions with Ford and Volvo during last month's auto show in the Chinese city of Guangzhou, the newspaper said, citing an unnamed source at the Chinese company.

The report did not provide details. It quoted an unidentified Changan executive as saying there was a chance for a deal. Changan is one of China's six biggest auto groups.

Ford on Dec. 1 said it was evaluating the future of Volvo because of the global economic slump. At the time, Ford said the review would take months. The company bought the Swedish automaker for $6.5 billion in 1999 and hasn't been able to keep it profitable.

Tom Malcolm, a Ford spokesman, declined to comment. A Changan spokesman in China could not be reached for comment.

Ford operates a car venture with Changan's listed arm, Chongqing Changan Automobile Co, which makes mid-sized Focus sedans.

Ford reiterated yesterday that it doesn't have an immediate need for $9 billion in U.S. aid it had requested in the form of a credit line. Rivals General Motors and Chrysler LLC are seeking government loans to avoid running out of cash this year.

http://www.autonews.com/article/20081209/ANA02/812099971/1131 (subscription only, posted in full).