US car giant Ford said today that it had reached a deal with China's Geely on the potential sale of its Swedish brand Volvo.
'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,' the statement said.
The US company said it anticipated 'that a definitive sale agreement will be signed in the first quarter of 2010, subject to appropriate regulatory approvals.'
Ford said the deal would give Volvo, a premium brand renowned for its sturdy, effective cars and employing 22,000 people worldwide, the resources 'to further strengthen the business and build its global franchise'.
Geely said in a statement that Volvo would retain its leadership in safety and environmental technologies. It also noted that Volvo 'will be uniquely positioned as a world leading premium brand to exploit opportunities in the fast growing China market'.
Ford announced in October that Geely was the preferred bidder for the Swedish car maker it acquired for $6.4 billions in 1999.
