Ford Motor Company has announced that it will sell the Volvo brand to Chinese automaker, Zhejiang Geely Holding Group Company Ltd., in the second quarter of 2010. [CFP]

Ford Motor Corp yesterday agreed on all major commercial terms with Zhejiang Geely Holding Group Co associated with the Chinese firm's proposed record-breaking acquisition of Volvo Car Corp.

Both car makers expected to sign the purchase agreement for Ford's money-losing Swedish car unit in the first quarter of next year, paving the way for completion of the deal in the second quarter, Geely said yesterday.

Further discussions would focus on finalization of documentation and financing, the private car maker said, adding that the deal was still subject to government approval.