Official: Geely to buy Volvo from Ford

STOCKHOLM -- Zhejiang Geely Holding Group signed a binding deal Sunday to buy Ford Motor Co.'s Volvo Cars unit, allowing the independent Chinese automaker to strengthen its foothold in Europe.

Per-Ake Froberg, a spokesman for Volvo Cars, in Goteborg on Sweden's west coast, confirmed that the agreement between the two automakers was signed there.

He would not disclose the value of the deal, saying details on the price tag and the financing of the agreement would be announced at a news conference at Volvo Cars headquarters later Sunday. Analysts have estimated the deal at about $2 billion.

Ford has been trying to sell Volvo since late 2008 to focus its resources on managing its core Ford, Lincoln and Mercury brands.

As Western automakers unload unprofitable assets, they are finding keen buyers in Asia.

In 2008, Ford sold its Jaguar and Land Rover brands to India's Tata Motors Ltd. for $1.7 billion, a third of what it paid for them. In addition, General Motors Co. is selling its rugged Hummer brand to construction machinery maker Sichuan Tengzhong Heavy Industrial Machinery Corp.

Geely, an independent automaker, has long coveted a bigger foothold in Europe.

The group is headed by prominent entrepreneur Li Shufu. It had been rumored earlier to be bidding for Opel and Saab.

Volvo employs nearly 20,000 workers, with the majority in Sweden.