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| Ford agrees Volvo sale to Geely | Ford agrees Volvo sale to Geely |
| (21 minutes later) | |
| Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely. | Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely. |
| In a statement Ford said "while some work still remains to be completed...[they] anticipate a definitive sale agreement in the first quarter". | In a statement Ford said "while some work still remains to be completed...[they] anticipate a definitive sale agreement in the first quarter". |
| Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused. | Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused. |
| Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm. | Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm. |
| Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary. | |
| It is thought that this update on the sale will help Geely to secure the financial backing it needs. | It is thought that this update on the sale will help Geely to secure the financial backing it needs. |
| No details were given of how much the deal is worth, but it is widely rumoured that Geely is paying Ford $2bn (£1.2bn; 1.4bn euros). That is considerably less than the $6.45bn Ford paid in 1999. | |
| Ford said it expects to continue co-operating with Volvo Cars, but did not intend to retain a shareholding in the business after the sale. | |
| Nomura's auto specialist Michael Tyndall said: "In theory, the Chinese market could be an opportunity for Volvo. It's a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer." |