That's why we find it quite ironic that U.S. insurance company AIG has bought a sizable stake in Chinese car and motorcycle-maker Lifan. We haven't seen any Lifan crash tests, so their cars could beat even Volvo at the safety game for all we know. But so far, Chinese cars in general aren't exactly known for their safety.
While one report says AIG's piece of Lifan could be as big as 25%, Lifan's Chairman Yin Mingshan said last year his company would not sell more than 20% to any one investment company. The deal awaits approval from the Chinese government, which is expected to come later this month or in early March.
AIG apparently sees lots of potential in China having also announced in July that it had received permission to begin selling insurance in China.
[Source: Reuters and Market Watch via China Car Times]