Geely Acquired Volvo In 2010#
Nearly three years after purchasing Swedish automaker Volvo from Ford, China's Geely is considered the favorite to acquire a majority stake in the American electric car startup
Fisker Automotive#
. With China's largest cities plagued by choking smog, the push for alternative fuel cars is gaining strength in the country, though EV demand remains niche and very much in its infancy. According to Reuters:
The interest in Fisker reflects China's strong push into alternative fuel cars as it seeks to foster the green technology sector and clear the increasingly polluted skies of its cities.
The knowledgeable individuals said both offers, which Fisker received in the last three weeks, were worth between $200 million to $300 million. A deal would give the suitors a majority stake in the southern Californian company, they said.
The sources, who are close to Fisker, said Geely appeared to be the preferred suitor.
Fisker's corporate leaders and their advisers believe Geely is "more serious" and "passionate" about Fisker and its technology, one of the individuals said.
Coming off a troubled 2012, Geely's possible acquisition -- which would dovetail with the recent purchase of Fisker's primary battery supplier, A123 Systems, by China's Wanxiang Group -- could give Fisker the firepower to tackle the potentially lucrative high-end EV market in China. Recently, luxury electric carmaker Tesla announced plans to open a dealership in China as part of its 2013 strategy, and although the market for pure electric vehicles in the country has been described as "cloudy," we might see some urban dwellers enticed by Beijing's plans to offer attractive incentives to people who opt for electric vehicles.