"Volvo" goes to the Chinese - "Ford" agreed all details of sale of its business in Sweden

American "Ford Motor" announced yesterday (December 24, 2009) that it was going to sell its loss-registering business "Volvo" to Chinese company "Geely" and that the signing of the sales contract was expected in the first quarter of the next year.

"Ford" stated in its announcement that "all the commercial terms for potential sale of corporation 'Volvo Car' have been agreed". "Ford" chose company "Geely" in October as the most suitable buyer for "Volvo".

The second largest manufacturer of motor vehicles in the USA bought Swedish "Volvo" in 1999 for 6.45 billion USD. The company put "Volvo" up for sale last year in order to collect money and invest it in production of three basic models: Ford, Lincoln and Mercury.

- The sale will ensure the funds for "Volvo", including capital investments that are necessary for further strengthening of operations, while "Ford" will be enabled to invest money in realization of its business strategy - it is stated in the announcement.