F&I Management & Training

Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely.

Ford said "some work still remains to be completed" but the deal will be finalised early next year ahead of completion soon after Easter.

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.

Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary.

The update on the sale is necessary for Geely to apply for government approval of the deal and with it, it is thought, the firm's financial backing.

No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2bn (£1.2bn; 1.4bn euros), less than a third of the $6.45bn Ford paid for Volvo 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.