It has agreed to sell Volvo Cars to Chinese automaker Geely for $1.8 billion, Ford Motor Co. said on Sunday.

Geely Chairman Li Shufu, Volvo Cars President and Chief Executive Officer Stephen Odell and Ford Chief Financial Officer Lewis Booth made the announcement, the Detroit Free Press reported.

The newspaper also reported that the news came at an event at Volvo's headquarters in Gothenburg, Sweden.

Ford expects the sale will close before Sept. 30, and after the sale Ford will continue to cooperate with Volvo Cars in several areas for a smooth transition, but will not retain any ownership in the business, Booth said.

According to reports of the Free Press, Shufu said, "Today is a milestone in the history of Geely and the future of Volvo Car Corp."

Volvo will continue to be run by Volvo's management team, he further added. (With Inputs from Agencies)