So this is basically a supplement to recently reported news here that Geely was getting together a quarter billion dollars to do something, and it denied that its aim was to buy Volvo.

Now, the current Volvo CEO, Stephen Odell, has also denied that Geely is interested in purchasing the beleaguered auto company.

This actually leaves Volvo in a pretty bad spot–it’s a money losing division inside a money losing company in a bad economy.  You add all these little results together and it looks more like someone’s just waiting for Volvo to bottom out so they can swing in and buy up all of Volvo’s assets for pennies on the dollar.

Considering the only other firm to even express an interest was Beijing Auto, and they were knocked out of the running way back in June, this doesn’t mean anything good for Volvo.

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They are compact but the price is still something to think about. And with the notion that Chinese cars may soon be seen in stores like Costco is something that can happen. And with these cars situated in Mexico for manufacturing, you can just imagine how easy it would be to transport newly assembled Chinese cars into the U.S. market which would only lack the need for aggressive distribution and marketing from thereon.

GS is building an assembly plant in Michoacan, Mexico with FAW. The plan is for vehicles to roll off the line beginning in 2010. GS Motors will launch the FAW brand in Mexico this year with the F1 Hatchback, an entry-level car sold for under $5,500. FAW, one of the largest Chinese automakers, is allied in China with Volkswagen.

GS Motors is racing to bring the first Chinese cars to America via Mexico—but they are not alone. BYD (Build Your Dreams) showed plug-in hybrid and electric model in Detroit last month and promised to bring them to the US as early as next year. In fact, many of China’s 80 or so auto companies have made similar gestures, with varying degrees of seriousness.

(Source) Hybrid Cars

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