Ford and Geely agree on Volvo sale

Ford expects to sign a deal to sell its Volvo car unit to China's Zhejiang Geely Holding Group by the first quarter of 2010 and close the deal in the second quarter, the U.S. automaker announced Thursday.

Ford said that all of the deal's key commercial terms have been settled. Ford added that work still needs to be done before the deal is completed, such as Geely securing its financing and getting approvals from the Chinese government.

In its statement, Ford said that 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."

Ford was the only U.S. automaker to avoid bankruptcy and a U.S. government bailout thanks to the $27 billion borrowing program it completed before the crushing decline for the U.S. auto market that began in 2008. More at AutoWeek