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"Today represents a milestone for Geely," the company's chairman Li Shufu said.
Loss-making Volvo has been on the market since 2008, when Ford put it and several other brands up for sale.
Jaguar and Land Rover in the UK have already been sold to India's Tata Motors.
Ford hopes that the sale of Volvo will help it pay off its debts and focus on its core brands, following a dire period for the global car industry.

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