SAIC Motor Corporation has predicted that it will achieve sales of three million units next year, it emerged yesterday (22nd December).

Chief Executive Chen Hong confirmed in an interview with Shanghai Securities News that China's largest automaker is expecting a 13 per cent rise in sales volumes in 2010.

Furthermore, he noted that the company is hoping to shift approximately 2.65 million units over the course of this year.

Mr Hong's optimism is derived from the boom currently being experienced in the Chinese auto market, which can be attributed to a range of government incentives.

Law-makers in Beijing are offering tax cuts on purchases of vehicles with engines of 1.6 litres or less, while buyers in rural areas are being given discounts on small, fuel-efficicent vehicles.

Meanwhile, Beijing Automotive Industry Holding Corporation (BAIC), which is the country's fifth largest automaker, has confirmed that it paid $200 million to acquire technology from General Motors' Saab unit.

As a result of the deal - which incorporates the rights to three overall vehicle platforms, two engine technologies and two transmission systems - the company will be able to sell Saab-based cars from 2011.

"The overseas technology takeover by BAIC is not only targeted at simple technology, such as manufacturing blueprints, but also the management systems that will enable BAIC to continuously develop and produce high-quality vehicles," read a BAIC statement.

In related news, Ford has confirmed that it is "likely" to sell its struggling Volvo unit to Chinese automaker Zhejiang Geely Holding Group, according to a report by Bloomberg.

The US company had already confirmed in October that Geely was its "preferred bidder".

Sources:

China's SAIC Motor sees 2010 sales rising 13 pct-report (22/12/09)

Beijing Auto pays $200 million on Saab technology (22/12/09)

Ford Is Now Said to See Volvo Sale as Likely to Geely (23/12/09)

Ÿ Adfero Ltd