Geely's Chairman Li Shufu (L2) signs the deal with Ford's CFO Lewis Booth. China's Zhejiang Geely Holding Group on March 28 signs a deal with Ford Motor Co. on the takeover of Sweden's Volvo Cars. [Xinhua]

The agreement provides a solid foundation for Volvo to continue to build its business under Geely's ownership, said Booth at the ceremony.

"China, the largest car market in the world, will become Volvo's second home market. Volvo will be uniquely-positioned as a world-leading premium brand, tapping into the opportunities in the fast-growing China market," said Li.

Geely has secured all necessary financing to complete the transaction, he said, adding that Geely intends to preserve Volvo Cars'existing manufacturing facilities in Sweden and Belgium, and explore opportunities to manufacture Volvo vehicles in China for the local market.