Ford confirms that it is on the verge of announcing the successful sale of Volvo to Chinese auto maker Geely. According to a Ford press release, all substantive terms of the sale have been settled and the final deal will be signed in the first quarter of 2010 after financing details and final government approvals are secured.

The announcement went on to say that Ford and Volvo would continue to cooperate in key areas but that Ford would retain no ownership interest in the Swedish car maker. Presumably, such cooperation would involve technologies related to auto safety and chassis development.

Chinese car makers have found it difficult to break into the U.S. and European markets. This deal will give Geely the toe hold it needs to be a presence in these important markets. It will also gain access to automotive safety technology, an area that has been a distinct weakness for Chinese car makers.

--M.D.