Ford close to selling Volvo unit to China's Geely

STOCKHOLM, Dec. 23 -- Ford is close to selling its Volvo unit to China's Geely Group and expects a final deal early next year, the U.S. auto giant said in a statement.

"Ford Motor Company confirmed today that all substantive commercial terms relating to the potential sale of Volvo Car Corporation have been settled between Ford and Zhejiang Geely Holding Group," the statement said.

Ford said that work on financing and government approvals remains to be completed, adding that it expects the deal to close "in the second quarter 2010."

"The perspective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise," Ford said.

Ford's statement did not reveal the amount of Geely's offer.

Geely said in a separate statement that its negotiations with Ford had deepened since October and that it had also held "constructive" talks with Volvo's management and Swedish union and government officials.

Ford announced plans to sell its loss-making Volvo unit last December. The automaker in October chose Geely as its preferred bidder for Volvo, which it acquired in a 6.4 billion-dollar deal in 1999.