Volvo is handing over two-thirds of its Polestar shares to Geely

As already indicated a few weeks ago and now specifically calculated, the Swedish-Chinese car manufacturer Volvo wants to acquire 62.7 percent of its shares worth 9.5 billion Swedish crowns (a good 852 million euros) in the electric car manufacturer of Swedish-Chinese Polestar. transfer them to Geely’s parent company, which is common to both companies, according to the current announcement.

Accordingly, Volvo wants to retain an 18 percent stake in Polestar. Volvo currently owns 48 percent of the financially troubled Polestar brand, which has recently come under fire from analysts who see the stake as a drain on Volvo’s resources. “Since we have a strong operational partnership with Polestar and a financial relationship, it makes sense that we maintain influence through an 18 percent stake in Polestar.“, says Jim Rowan, President and CEO of Volvo Cars, explaining the decision not to completely abandon Polestar.

Polestar confirmed to Elektroauto-News that Geely Holding, which is also a major shareholder in Volvo, is now stepping in as the new major shareholder. So Polestar will be a completely independent part of the Geely Group. Geely has agreed to take a majority stake in Polestar from Volvo Cars. This is the first time that Geely Holding has a direct stake in Polestar. Polestar now joins Volvo, Lotus, Zeekr and all other Geely brands as an independent member of the Geely Group.

Geely, for its part, reaffirms its faith in the Polestar brand and the Polestar vision. Polestar CEO Thomas Ingenlath added: “While this transaction allows us to welcome new shareholders, our relationship with Volvo Cars remains intact. Our customers will continue to benefit from our existing partnerships, including in the areas of sales and customer service, which ensure security and stability. The strong support from Geely comes at an important time as we launch our two performance SUVs, the Polestar 3 and Polestar 4 – an important step in our development.“

The close relationship between Polestar and Volvo has not changed, as Volvo also emphasizes: Volvo dealers will therefore continue to service Polestar electric cars and Volvo will remain a strategic investor in Polestar with 18 percent of its shares. The company also agreed to extend a loan of 1 billion dollars until 2028. Polestar is now entering the next phase of development and is doing so with confidence and faith in the future.

Also according to Volvo “greater operational cooperation“From Volvo and Polestar in the areas of research and development, manufacturing, after-sales and business will continue. Daniel Donghui Li, CEO of Geely Holding Group, comments: “We have great confidence in Polestar and look forward to 2024 with high hopes based on a strong and attractive product portfolio that strengthens Polestar’s position as a global premium electric car brand.“. As Polestar’s long-term owner, Geely is committed to supporting the recently announced business plan and financial goals. Li also points out that Volvo is now “fully on its changesmay consider becoming a pure electric vehicle manufacturer by 2030.

Source: Volvo – press release from February 23, 2024 / Polestar – news by email