Geely Auto says still seeking acquisitions

A customer talks to a salesmen near a Geely Vision car at a Geely Automotive showroom in Suining, Sichuan province September 16, 2009.

HONG KONG (Reuters) - China's Geely Automobile Holdings Ltd (0175.HK), whose parent is bidding for Ford Motor's (F.N) Volvo Car, said on Monday that it will continue to seek acquisition opportunities and is interested in projects including parts and engines.

"The battered U.S. and European auto markets continue to provide us with buying opportunities," Lawrence Ang, an executive director of Geely Auto, told reporters after the company's shareholder meeting.

Geely had been in talks on General Motors' GM.UL Saab unit, which GM has put up for sale, but the talks ended without result some time ago.

Asked whether the talks would be revived, Ang replied "Who knows?"

Shares of Geely rose 3.2 percent on Monday, beating a 0.8 percent loss on the benchmark Hang Seng Index .HSI.

Zhejiang Geely Holdings, which had been named by Ford as the preferred bidder for its money-losing Swedish unit Volvo, was seeking at least $1 billion in loans from Chinese banks to finance its $1.8 billion bid, sources told Reuters in December.

Geely Auto, which used to make and sell some of China's cheapest cars, raised $334 million earlier this year by issuing convertible bonds and warrants to an affiliate of Goldman Sachs (GS.N). Part of the proceeds would be used to fund acquisition plans, Ang said.

Geely Auto also aimed to lift capital spending by 25-43 percent next year to about 1 billion yuan, initially for expanding capacity and building a new model platform, he said.

The company was optimistic about China's car market and aimed to sell 400,000 vehicles next year, up from a target of 300,000 for 2009, Ang said.

(Reporting by Joanne Chiu, writing by Alison Leung; Editing by Chris Lewis)