Geely seen as Fisker's preferred purchaser
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E-mail Agencies via Shanghai Daily, February 19, 2013
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China's Zhejiang Geely Holding Group is favored to secure a majority stake in troubled US electric car maker Fisker Automotive. [File Photo] |
China's Zhejiang Geely Holding Group is favored to secure a majority stake in troubled US electric car maker Fisker Automotive, according to two sources familiar with Fisker's search for a strategic investor or partner.
Fisker, the Anaheim-based plug-in hybrid maker, is currently weighing bids from two Chinese auto makers: Geely, the owner of Sweden's Volvo, and Dongfeng Motor Group Co.
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 US$200 million and US$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.
The Hangzhou-based company also "can move fast" in making decisions - unlike Dongfeng, whose responsiveness could be hampered by its multi-layered decision-making structure typical in a Chinese state-owned enterprise, according to the source.
That quality is likely to work against Dongfeng, since Fisker is under a tight deadline to find a suitor, he added.
"Most of all, with Geely we're dealing with one decision maker," the individual said, referring to its charismatic founder and chairman, Li Shufu.
Li is also deemed a better suitor due to his experience in making cross-border acquisitions. In 2010, Geely acquired all of Volvo from its previous owner Ford Motor Co.
"Overall, we think Geely is a better fit," the individual said.
The sources noted that Geely had already sent a team of engineers to Anaheim to evaluate Fisker and its technology for battery-powered electric cars with a small gasoline engine used to extend the car's driving range.
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