Beijing - China's rapidly expanding Chery auto group is considering a bid to buy Swedish-based Volvo from Ford Motor Co, state media said on Monday. The Caijing business magazine quoted sources as saying that Chery has not yet reached any agreement or applied for permission from the government of Anhui, the company's home province.
It said Jin Yibo, an assistant to Chery's chief executive, had ruled out the possibility of buying Volvo, but other sources told the magazine that Chery had already contacted banks and private equity firms about financial backing for a possible acquisition.
Industry insiders estimated that Volvo could cost Chery more than 30 billion yuan (4.4 billion dollars), it said.
Chery is a state-owned firm set up by the government of Wuhu city in Anhui province during the 1990s.
It produces several lines of passenger cars, mostly cheap compact models, and plans a share offer in Shanghai next year, Caijing said.
Earlier rumours reported in state media had linked the Shanghai Automotive Industry Corporation to a possible takeover of Volvo.
