China Changan Auto eyes overseas acquisitions

By Fang Yan and Ken Wills

SHANGHAI (Reuters) - Major Chinese auto group Chongqing Changan Auto Co 000625.SZ is planning acquisitions overseas as it prepares to enter Europe and North America where the industry downturn has hit hard, its chairman said on Sunday.

"The longer the crisis lasts, the bigger the chance of failure or a scale-down of some American and European automakers," Xu Liuping told reporters on the sidelines of a news conference.

"And that has provided a chance for entry by Chinese manufacturers."

Changan, Ford Motor's (F.N) China partner, is among several Chinese auto makers that have expressed interest in the Volvo car brand, which the Detroit automaker is seeking to sell in an effort to raise cash.

Asked about progress on a possible Volvo deal, Xu declined to comment, citing disclosure rules mandated by the Chinese securities regulator.

"We are actively pursuing mergers and acquisitions at home and overseas but have not reached any deal so far."

Changan is among the growing ranks of Chinese automakers, including Chery Automobile, that hope to emulate the global success of their Asia rivals.

The firm said in February it had signed a framework agreement with Autopark Mexico to start making cars in Mexico next year, with an initial capacity of 50,000 units.