Holden denies takeover approach from Chinese car marker

GM Holden has denied reports that China’s third-biggest car manufacturer is investigating buying Holden from its struggling parent company, General Motors.

Vice president of the Dongfeng Motor Corporation, Li Shaozhu, told The Age he had interest in Holden following a tour of factories in Wuhan with trade minister Simon Crean and industry minister Kim Carr.

“We are paying close attention to the impact the financial crisis has had on the international automotive industry and we’re keen about utilising such resources,” he said.

When asked specifically about Holden, he replied: “We’ve been paying attention and there have been contacts”.

But Holden has denied the claims. Spokesman Scott Wiffen told SmartCompany that managing director Mark Reuss and other board members have denied any contact, while GM China president Kevin Wale has also played down any contact between the two companies.

“This story is absurd. We’re not aware of any approach from Dongfeng or any discussions for that matter – nothing, either formally or informally – so it’s either total fabrication or categorically wrong. Holden did not entertain, pursue or investigate full, majority or partial ownership change at any stage.”

“No one has spoken to our MD Mark Reuss, our GM China head Kevin Wale or our Asia Pacific President Nick Reilly; no one has spoken to the Holden Board and we are not aware of any conversations with anybody in any decision-making capacity at Holden or beyond. So the suggestion that something is underway is more than just a little bit absurd, it is absolutely false.”

The Federal Government has backed Holden’s claims.

“General Motors Holden has had no contact with Dongfeng, the assets are not for sale, and there has been no change to that position,” he told The Age.

“Dongfeng are interested in investments in Australia but the discussions we have had regarded components manufacturers and the possibility of other components from Australian producers which could include engines,” he said.