The sale of Volvo to Chinese car maker Geely is the first time a Chinese car maker has acquired 100 percent of a foreign rival. Li Shufu, chairman of Geely Holding, said that they would push to expand market shares around the world while keeping to the characteristics that made Volvo popular. Stefan Jacoby, the former head of Volkswagen of America, was named president and chief executive and will join the board of Volvo in August to determine the strategy of the company.

Ford bought Volvo for $6 billion in 1999 as part of a global push in which it also acquired Aston Martin, Jaguar and Land Rover. Of those international luxury brands, Volvo is the last to be sold. Ford will now focuses on its core North American and European businesses. Ford, while emerging relatively healthy from the crisis during which General Motors and Chrysler filed for bankruptcy protection, is still struggling under about $27 billion in debt, and can use the funds from the Volvo sale to pay it off.

The Chinese car maker paid $1.3 billion cash and issued a $200 million note payable to Ford to complete the acquisition. Further payments are expected after an audit and final adjustments in Volvo’s value.