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Weichai denies interest in GM French plant

(Agencies)
Updated: 2009-02-19 15:10

Major Chinese engine maker Weichai Power Co said on Thursday it had no interest in buying General Motors' auto parts unit in France, denying media reports.

Related readings:  Rejig to spare GM arm  Sichuan Auto denies interest in GM's Hummer  Sources: GM in talks with SAIC to raise cash

GM said in August that it intended to sell its plant in Strasbourg and saw possible interest from Asia. French media on Wednesday named Weichai as a potential buyer.

"The board would like to state that the contents of such an article have no basis in fact. The company does not have any intention to make such an acquisition," the Chinese firm said in a statement.

The struggling Detroit automaker, on life support after obtaining billions of dollars in funds from the US government to stave off bankruptcy, has been seeking buyers for its assets, including for its Hummer SUV line and the Swedish brand Saab, but no deal has been struck so far.

GM has requested $16.4 billion in additional loans from the government for a total of up to $30 billion, and has said it will run out of cash as soon as March without new federal funding.