Geely Automobile Holdings has approached Magna International about a potential partnership involving Opel, a media report said.
Talks between the Chinese automaker and the Canadian auto parts supplier included the possibility of Geely taking a stake in Opel, but Magna is refraining from any such partnership for now, an anonymous source told Reuters.
Geely earlier admitted interest in Ford’s Volvo car unit but industry analysts told the news agency Chinese automakers, weak in their home market, would find it challenging to handle overseas auto assets given their limited international exposure.
“I think it will be hard for Geely to have a piece of the Opel deal in the first place. Magna’s already got a Russian partner and involvement from a Chinese firm will make it very complicated,” said Sinolink Securities analyst Li Mengtao.
“It also makes little sense for Geely if it ends up being a minority shareholder with little access to the technologies it desperately needs.”