The agreement, signed today, marks the end of a firesale of Blue Oval brands, having sold off Jaguar and Land Rover to Tata last year.
The deal represents a huge loss for Ford which bought Volvo for 6.5bn dollars in 1999, but helps the American giant pay off debts.
‘Today represents a milestone for Geely,’ said the company’s chairman Li Shufu.
Volvo – which hasn’t made a profit since 2005 – has been for sale since 2008. Geely is China’s biggest independent car maker and has pledged to keep Volvo a separate company with its headquarters staying in Sweden.
But the new owners plan to repidly expand its operations in China, a burgeoning market that is ripe for the brand.
What does the move mean for dealers? Well, on the face of it very little. With the maker’s headquarters remaining in Sweden, operations in the UK aren’t likely to be affected.