Ever since Geely's acquisition of Volvo, there has been a race among Chinese own brand manufacturers to purchase foreign automotive enterprises. The most recent target is failing US electric vehicle manufacturer Fisker, which is currently searching for a buyer.
When Fisker made its initial pleas for a financial savior, several Chinese automotive enterprises, including Wanxiang, Geely, Dongfeng and BAIC, answered its call. However, with Fisker continuing to seek bankruptcy protection, BAIC appears to be the only Chinese company with an interest in negotiation with the failing manufacturer. According to a report appearing in the Securities Daily today, BAIC's top executives have flown to the US to negotiate with Fisker. An executive from BAIC confirmed that the negotiations are still undergoing. However, the report makes sure to add that BAIC is a large corporation, and it will take time for details from the negotiation to come out.
Fisker's lack of core technology to offer has made it very hard for it to find a buyer. "Whether or not the company has a problem is not the key [issue], the key is how valuable its technology, products, brand and management are to Chinese manufacturers," an analyst from Gasgoo.com (Chinese) commented.
Earlier this week, BAIC, alongside Beijing Electronics Holding, signed an agreement with Korean conglomerate SK Group to establish a joint venture enterprise manufacturing EV batteries. BAIC will hold a 19 percent share of the one billion yuan ($161.64m) JV, which will be based in Beijing.
