The crisis in the American auto industry may create an opportunity for new entrants into the North American and European markets, including Ford Motor's China partner, Chongqing Changan Auto Co.

In a report from the Shanghai Auto Show by Automotive News, Xu Liuping, Changan's chairman, is quoted speaking to reporters. "The longer the crisis lasts, the bigger the chance of failure or a scale-down of some American and European automakers. And that has provided a chance for entry by Chinese manufacturers."

Changan is one of several automakers from China that have expressed interest in purchasing Volvo from Ford, a move the Detroit giant is undertaking to raise cash. Xu declined to comment on the potential acquisition, however, pointing to mandated disclosure rules by the Chinese securities regulator.

Xu did say, however, "We are actively pursuing mergers and acquisitions at home and overseas, but have not reached any deal so far."

In February, Changan announced an agreement with Autopark Mexico to begin building cars there next year with an initial capacity of 50,000 units. Xu said Changan would sell vehicles in the U.S. from Mexico, but did not give a timetable for that move.

Currently, Changan is the fourth largest automaker in China, moving 306,500 units in the first quarter of this year, an increase of 13 percent from 2008. In particular, there is a strong demand for the company's compact cars and minivans.