Carmakers Warned On Overseas Acquisitions

Shanghai, March 3, 2009: (Gasgoo.com) The Chinese government has warned automakers against acquiring assets from struggling overseas rivals, Shanghai Securities News reported on Monday.

"Chinese car makers are not strong enough to participate in cooperation with big global players, " said Chen Bin, head of the industry co-ordination department of the National Development and Reform Commission of China.

The report added that Chinese automakers Geely, Changan, and Chery have been approached by many overseas rivals in recent months.

Chery said last month it would not rule out the possibility of buying a troubled European auto brand, while Changan and Dongfeng are expected to place indicative bids for Volvo Cars in April, according to Reuters.

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