China's Geely buys Volvo for $1.8bn

The Chinese car maker Geely has signed a deal to buy Volvo from US car giant Ford for $1.8bn (£1.2bn).

The agreement, which was first announced in December, is the biggest overseas purchase by a Chinese car manufacturer.

For Ford it means a step towards focusing on its core Lincoln and Mercury brands.

Caroline Hepker reports from New York.