Ford has finally done it - it has secured a deal to sell off its Volvo Cars division.
The Detroit-based automaker has drafted a deal with Chinese Zhejiang Geely Holding Group to buy the Swedish brand in the second quarter of 2010. Ford has said that all the key terms of the deal have been agreed upon. But Geely still has to secure financing for the purchase and obtain approval from Chinese regulators.
Ford released a statement on the sale saying it would ensure Volvo's future and that Ford will be focusing on its ONE Ford strategy of strengthening the brand's global presence.
With the sale Ford will not retain any ownership of Volvo but will continue to cooperate with the brand on certain projects, the company said.
For Geely Automotive, a subsidiary of the holding group, the purchase provides it with advanced automotive technology and a valuable inroad into Western markets for a Chinese automaker.
Geely will be acquiring Volvo for an estimated $1.8 billion (1.26 billion euros). Ford bought Volvo for $6.45 billion (4.5 billion euros) back in 1999.