Updated ! SAIC source : No contact with Ford on Volvo

2008 Volvo XC70

Shanghai Automotive Industry Corp. is not talking to Ford Motor to buy Volvo, an SAIC source said.

"As far as I know, our company has never contacted Ford on the purchase of Volvo Cars," said the source, who declined to be identified.

Speculation that Ford is planning to sell its Swedish brand Volvo -- possibly to a Chinese automaker -- was triggered by a report in Sweden's Dagens Industri business newspaper early this week.

A spokeswoman at Volvo declined to comment on the rumors.

Volvo Cars announced this week that it would cut 2,000 jobs, mostly in Sweden, as efforts continue to stem losses at the premium car brand.

Ford Motor considered selling Volvo last year, but decided to hold on to it in November.

A Ford spokesman said this week: "We have been consistently saying since the end of last year that Volvo is not for sale. We are focused on improving Volvo's business results."

Related Article : Ford talks with SAIC to sell Volvo ?

[Source : Automotive News : Subscription required]