Ford Motor Co., Dearborn, Mich., confirmed that all substantive commercial terms relating to the potential sale of Volvo Car Corp. have been settled between Ford and Zhejiang Geely Holding Group Co. Ltd., Hangzhou, Zhejiang, China.

While some work still remains to be completed before signing-e — including final documentation, financing and government approvals — Ford and Geely anticipate that a definitive sale agreement will be signed in the first quarter of 2010, with closing of the sale likely to occur in the second quarter 2010, subject to appropriate regulatory approvals.

The prospective sale will ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy.

Ford said it will continue to cooperate with Volvo Cars in several areas after a possible sale, but the company does not intend to retain a shareholding in the business post-sale.

More details will be made available once the expected definitive sale agreement is signed in the first quarter of 2010.