Volvo News
Beijing Automotive Industry Holding Company Reportedly Gives Up On Volvo Deal
By
Jun 16, 2009, 10:42

According to TheTruthAboutCars.com, which cites the Chinese publication Chinese Business Daily, talks between Volvo's parent company, Ford, and Beijing Automotive Industry Holding Company (BAIC) have quickly fallen apart and the Chinese company has backed down from any efforts to buy up a foreign automaker.

It all started with BAIC's attempt to grab Opel from General Motors. In that case, Magna came out as the top buyer and that deal seems to be as good as done. A BAIC insider notes the fact that the German government is pushing that deal through, making any attempt to break it up pretty useless. BAIC also tried to buy Saab but faced concerns that executives inside that brand didn't want Saab to compete with GM products already on sale in China. Talks there have also ground to a halt thanks to a deal finalized today with Swedish sports car builder Koenigsegg.

Which leaves Volvo. Insiders say BAIC has given up there, too, thanks to a lack of interest from the Volvo side of the deal. Executives in Sweden have no interest in selling or building cars in China. Based on its past few months of rejection, we don't blame BAIC for getting frustrated and walking away from the table for good. Why try to marry someone who doesn't love you?

For Volvo and Ford, the crystal ball will remain cloudy for just a little while longer.

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