Chinese car company Zhejiang Geely Holding Group Co. Ltd and Ford Motor Co. signed a binding agreement to sell the Volvo Car Corporation to Geely for $1.8 billion, in Gothenburg, Sweden, on Sunday.
Ford originally paid over $6.4 billion for the Swedish car brand. Geely and Ford are expected to close the sale at the end of the 2010 third quarter.
After initially withholding support on grounds that they were not given enough information about the specifics of the sale, Volvo unions yesterday came out in support.
As part of the deal, Ford has agreed to “provide engineering support, information technology, access to tooling for common components, and other selected services” during the transitional period to ensure a smooth takeover, according PR Newswire.
