US car giant Ford has reached agreement to sell its Swedish unit Volvo to the Chinese firm Zhejiang Geely, the Chinese company confirmed Wednesday, DPA reported.
A Geely spokesman told the German Press Agency dpa that the company had reached an agreement with Ford "in all important points."
A Swedish trade union representative said earlier that an agreement had been reached for Geely's takeover of Volvo.
The spokesman said Ford would be disclosing further details in the course of the day.
There was no immediate confirmation from Volvo about the deal.
Late Tuesday, the Detroit Free Press newspaper, citing unnamed sources, reported that Geely had offered some 2 billion dollars, less than a third of what Ford paid for Volvo a decade ago.
The deal is the second major development affecting Sweden's crisis-ridden car sector in a week, after US giant General Motors last week said its efforts to sell Saab had fallen through and that it planned to wind the company down starting in January.