Volvo officially sold to Geely

The deal had been in the works for months, but Ford has now confirmed that the Swedish carmaker has been officially sold to Geely, pending approval from the Chinese government and for Geely to secure financing for the deal. Ford has said that all the key terms of the deal have been agreed upon, and that the final handover is expected to be completed by the second quarter of 2010.

In a statement, Ford said: "Ford Motor Company confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group Company Limited. While some work still remains to be completed before signing - including final documentation, financing and government approvals - Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals."

"The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy. While Ford would continue to co-operate with Volvo Cars in several areas after a possible sale, the company does not intend to retain a shareholding in the business post-sale."

Ford will no longer have any stake in Volvo, but will continue to provide assistance and cooperate with Volvo on future projects. Geely will in return gain Volvo's advanced automotive technology, including those related to safety and the environment, and will also seek to use Volvo as a way into Western car markets.