After months of watching the back and forth bout between Ford and Geely, Ford has announced that they have entered into a definitive agreement with Zhejiang Geely Holding Group Company Limited.
The agreement was reached at $1.8 billion (US) and will be paid with a note of $200 million (U.S.) and the remainder in cash.
The purchase price includes Volvo cars and related assets (primarily intellectual property).
Ford has said they will continue to operate Volvo cars in certain areas in order to ensure a smooth transition after the sale.
Ford has also agreed to supply powertrains, stampings, engineering support, information technology, access to tooling for common components, and other selected services and supplies for differing periods of time.
The deal is still anticipated to close in the third quarter of 2010.