(Thu 24 Dec 09)

While the future of Saab remains in question (it depends on whether Dutch sportscar manufacturer Spyker can come to an agreement with General Motors) that of Sweden's other major car brand, Volvo, seems a little more secure.

Chinese company Geely has announced that it "has settled all substantive commercial terms" with Volvo's current owner Ford relating to a future acquisition. Geely has also had meetings with Volvo's management and workers, and with Government officials in both Sweden and Belgium, where most of Volvo's manufacturing takes place.

A definitive agreement is expected to be signed in the first three months of 2010. If this does lead to an acquisition, it will mean that all the parts of what used to be Ford's Premier Automotive Group have been sold to business in countries which perhaps might have come as a surprise a few years ago: Jaguar and Land Rover are now owned by Indian company Tata, while much of the money required to buy Aston Martin came from the Middle East.

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