Ford Motor will continue to make Volvo S40 and S80 models at its car joint venture in China’s Chongqing city for some time after the planned purchase of the Swedish car brand by China's Geely, the biggest in a recent spate of similar acquisitions of distressed global assets by Chinese carmakers.

Victor Young, public relations director for Zhejiang Geely Holding Group

"Due to the earlier Volvo production contract, the Chongqing plant will continue to make S40s and S80s until the agreement expires," Victor Young, public relations director for Zhejiang Geely Holding Group.

Young declined to publicize when Ford's production agreement on Volvo models at the JV was set to expire.

In China, Ford operates a three-way tie-up with Chongqing Chang’an Automobile and Mazda Motor Corp, making Ford, Mazda and Volvo models. The Volvo models are made at a plant in the western municipality of Chongqing.

Zhejiang Geely, parent of listed arm Geely Automobile, aims to sign a preliminary agreement to buy Ford's Volvo unit for up to $2 billion in February and to close the deal by May, a company source told Reuters in January.

Ford, the only major U.S. automaker to avoid bankruptcy last year, is selling its luxury Swedish brand to free up cash as it climbs out of the industry's worst-ever downturn.

By Xie Fang