China’s biggest overseas auto purchase finally took place on Sunday. Zhejiang Geely Holding Group, China's largest private-run car maker, at last came in terms with Ford Motor Company (NYSE:F) and gave their approval for the purchase of latter’s Volvo car unit. The deal is likely to be worth US$1.8 billion. The sale was on cards for the past two years.

The transaction is a landmark for Geely group and was almost impossible to take place a few years ago as the company’s turnover was just 16% of the total revenue of Volvo and employed just over half the labour force. Initially Geely staff did not support the deal due to apprehensions about future, but now they are for the motion.

Volvo is the last member of Ford’s former Premier family, put up for sale after Aston Martin, Jaguar and Land Rover. The brand would remain independent from other concerns of Geely with its own management team based in Sweden, in order to stay closer to its main outlets with rich supply of output.

The contract is a life saver for this loss making unit of Ford and will also facilitate China’s movement in the western auto market helping it overcome its problem of technology and brand recognition. However, on the basis of last year’s sale which increased up to 46 percent, China topped the auto market.

Geely’s chairman is planning to install a unit in Sweden aiming to manufacture up to 300,000 Volvo cars or replace China’s officer’s car of choice from Volkswagen AG's (OTC:VLKAY) Audi A6 to China made Volvo cars. By 2015, the company is targeting to reach the turnover of 2 million vehicles.

Shares of Geely Automobile Holdings (PINK:GELYY) are trading up 4 percent after closing the deal.

For Ford investors, the deal is anything but a dampener. The money losing business has already been factored in the stock price as a prime candidate for sale in near future, thus no movement after the announcement. The deal is a prime example of how companies should get rid of assets basking into yesteryears’ glory. After the sale of last legacy, there is no looking back for Ford.