INDEPENDENT Chinese car-maker Zhejiang Geely Holding Group has signed a binding deal to buy Ford's Volvo Cars unit for $1.8billion (£1.2bn) as it bids to expand into Europe.
The purchase gives Geely a European luxury car brand with a reputation for safety and quality at a time when China, which last year surpassed the US as the world's largest car market, is eager to improve its competitiveness by acquiring foreign automotive brands that might help it improve its technology and expand into overseas markets.
The price, which includes a $200million note with the remainder to be paid out in cash, is far less than the $6.45bn Ford paid for the Swedish car-maker in 1999.
The US car-maker has been trying to sell Volvo since late 2008 to focus its resources on managing its core Ford, Lincoln and Mercury brands.
