BEIJING — China's FAW Group, one of the country's largest automakers, could be about to make a play for Brilliance Auto, a much smaller company that already has begun exports to Europe and plans to enter the U.S. market in 2009 or 2010.

Brilliance is partnered in China with BMW and makes mostly sedans, as well as minivans that it licenses from Toyota. It builds and sells about 300,000 vehicles a year under the BMW, Zhonghua and Jinbei brands. Based in the northern city of Shenyang, Brilliance plans to make its first U.S. auto show appearance in Detroit in January.

FAW, based in the northern city of Changchun, is partnered with VW/Audi, Toyota and Mazda and also builds and sells vehicles under several of its own brand names, including Xiali, Besturn and Hongqi. The automaker wants to boost sales of its own-brand vehicles to a million units a year by 2010. So far, it has not announced plans to enter the U.S. market, but industry observers believe that it is only a matter of time.

Chinese media reports say FAW is sitting on a hoard of cash, fueled by above-average sales growth in the domestic market. The company also is planning an initial public offering in 2009 and wants to beef up its portfolio of products and brands prior to the IPO, according to various Chinese media reports.

Both companies are state-owned, so a merger or buyout would require Beijing's blessing to proceed.