June 11 (Bloomberg) -- Beijing Automotive Industry Holding Co., a closely held Chinese automaker, may bid for Ford Motor Co.’s Volvo Car Corp. unit, according to a person familiar with the discussions.

Beijing Auto, which failed in a bid last month for General Motors Corp.’s Opel business in Europe, is expected to send executives this week to Volvo’s Gothenburg, Sweden, headquarters, said the person, who asked not to be identified because the matter is private. The Chinese delegation is to tour Volvo’s factories and review its books, the person said.

Ford, the only major U.S. automaker not in bankruptcy, is shedding international luxury marques to focus on rebuilding its namesake brand and to raise cash to avoid having to ask for a government bailout. Beijing Auto may challenge Geely Holding Group Co. for Volvo as Chinese carmakers seek advanced technology to build more profitable vehicles.

“For Chinese automakers, buying a brand may be easy but it’s more difficult to develop it afterwards,” said Zhang Xin, a Guotai Junan Securities Co. analyst in Beijing. “Beijing Auto and other Chinese automakers don’t have the capability to manage it or to do research and development on products.”

Geely, China’s biggest private automaker, remains the frontrunner among companies interested in buying Volvo, said the person familiar with the process. Geely executives toured Volvo’s plants and reviewed its books in April, the person said.

“There are a number of interested parties and there are continuing discussions,” said John Gardiner, a Ford spokesman based in Cologne, Germany. “It will take some time to unfold.”

Geely made its interest in Volvo known to Ford a year ago, before the Dearborn, Michigan-automaker put its Swedish unit up for sale, people familiar with the matter have said.

Wang Hong, a Beijing Auto spokesman, declined to comment.

Seeking $2 Billion

Ford is seeking about $2 billion for Volvo, less than a third of what it paid for the maker of sedans and station wagons a decade ago, two people familiar with the process have said. The carmaker put Volvo up for sale in December as the brand’s U.S. sales slid 31 percent.

The second-largest U.S. automaker sold U.K.-based Jaguar and Land Rover to India’s Tata Motors Ltd. for $2.4 billion last June. Ford sold its Aston Martin line for $931 million in May 2007 to a group of investors.

Beijing Auto, which has joint ventures to make vehicles in China for Hyundai Motor Co. and Chrysler Group LLC’s Jeep, submitted a letter of interest in GM’s Opel unit May 21, a day after the deadline for bids, people familiar with the proposal said at the time. GM and the German government selected Magna International Inc., one of the three original bidders, on May 29.

Beijing Auto’s interest in Volvo was reported earlier by the Wall Street Journal.

Ford fell 7 cents, or 1.1 percent, to $6.19 in New York Stock Exchange composite trading yesterday.

To contact the reporter on this story: Keith Naughton in Southfield, Michigan at Knaughton3@bloomberg.net

Last Updated: June 11, 2009 00:09 EDT