Dearborn, Michigan – Volvo is expected to be sold to Chinese automaker Geely early in 2010, as announced by Ford Motor Company, which owns the Swedish auto manufacturer.

Ford said that while some work still must be completed before signing, all substantive commercial terms related to the potential sale have been settled, and that a definitive sale agreement will likely be signed in the first quarter of 2010. The sale is expected to close in the second quarter of 2010, subject to appropriate regulatory approvals.

Ford said that while it will continue to cooperate with Volvo Cars in several areas following the sale, it does not intend to retain a shareholding in it.

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