Jan. 25, 2007 (China Knowledge) – China’s Chery Automobile Co. Ltd. has issued a statement refuting media reports that it is bidding for Romania's troubled Daewoo Automobile Co. Ltd.

Earlier media reports had said that Chery is competing with General Motors Corp, Ford Motor Corp, and Tata Motors Ltd. of India to buy a Daewoo Automobile plant in Romania.

The Romanian government had spent US$51 million for Daewoo Motors' 51% stake in the venture and US$10 million for debts from General Motors Corp. The government is now selling the plant, and intends to select a buyer by June. Romania’s privatization agency Avas said that the buyer has to ensure a minimum yearly output of 300,000 units.

Chery, a private carmaker based in Anhui, has set up six plants in five countries, including Russia, Indonesia and Iran. The company has said that it plans to export 70,000 units this year.