Chinese carmakers ambitious in acquiring foreign brands: analyst

Chinese automakers Geely and BAIC last week both admitted they were interested in acquiring Western car brands, but foreign analysts doubt the ability of Chinese automakers to manage GM and Ford discards.

"Getting involved in European companies is likely to bring a complexity of personnel management that will blow their minds," Graeme Maxton, a European independent auto analyst, told Reuters.

China's Geely Automotive last week said it was interested in Ford Motor Co.'s Swedish Volvo brand. Beijing Automotive Industry Corp.(BAIC) last week agreed to take a minority stake in Koenigsegg Group AB, the super carmaker buying fellow Swedish unit Saab from General Motors Co.

Klaus Paur, who directs the North Asia automotive division of global industry consultant TNS thinks the Chinese auto industry is getting too ambitious. "There are a lot of question marks here as they don't even have a solid brand in their home market."

Many Chinese manufacturers, such as Geely and Chery Automobile, have so far competed in low-end vehicles. BAIC, a partner of Daimler AG and Hyundai Motor Co., doesn't even have its own car brand.

"The temptation for them is obviously quick access to technology, brands and mature markets," said a senior executive working in China with a major US automaker, who declined to be identified due to the sensitivity of the issue. "But I'm not sure they can handle a brand like Volvo and turn it around."

Agencies and Shi Jierui contributed to this story

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