Ford on Wednesday announced settling "substantial commercial terms" of the sale of its Volvo division to Zhejiang Geely Holding Group, the Wall Street Journal reported. Financing has not been resolved and the deal has not received government approval, but Ford believes the the final agreement will be singed in the first quarter of 2010 and the deal will be complete by June 2010. People familiar with the discussions said Geely intends to finance the deal with US$2 billion in cash, bank loans and investor funds. Volvo is the last of Ford’s international holdings. Volvo spokeswoman Maria Bohlin said that concluding the commercial terms is "just one step in the process." "There’s still a long way to go," she said.
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