When Ford bought Volvo over a decade ago the deal was finalized for a whopping $6.5 billion but now when the same deal struck between Chinese Geely and Ford, th cost came down to 1/3^rd of the original costing $1.8 billion after two years of negotiations.

Zhejiang Geely Holding Group signed a deal to buy Ford Motor Co.’s Volvo car unit for $1.8 billion which will fulfill Geely’s aim of cracking the global car market.

Geely is China’s biggest privately owned car firm and with this move they are looking forward to expand in Europe.

The contract was finalized and signed by Ford CFO Lewis Booth and Geely’s Chairman Li Shufu. Booth mentioned at the press conference that they are happy with the deal with Geely and mentioned what a fair price for a good business this was under Geely.

“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,” Li said.