Volvo Plans to Reduce Its Ownership Stake in Polestar, with Geely Sweden Holdings Poised to Become the Majority Shareholder

Volvo Cars has announced its intention to reduce its stake in Polestar, with Geely Sweden Holdings poised to become the brand’s majority shareholder. Despite the dilution of shares, Volvo and Polestar will maintain their association, as stated in Volvo’s recent financial report. Polestar, which has faced challenges with declining global sales, will now see Geely Sweden Holdings taking over as the primary stakeholder. Volvo Cars will no longer provide additional funding to Polestar and has extended the repayment period for an existing loan until the end of 2028. However, both Volvo and Polestar will continue collaborating on research and development, manufacturing, after-sales services, and commercial activities.

In its financial statement for 2023, Volvo reported revenues of SEK 399.3 billion, marking a 21 percent increase over the previous year. The company noted improved profit margins in 2023, compared to the previous year when lithium prices impacted its margins. Volvo sold a total of 708,716 cars in 2023, with sales of fully electric cars reaching 113,419 units, representing 16 percent of its global sales volume. The company anticipates further growth in EV sales in 2024, with plans to launch three new EV models: the EX30, EX90, and EM90 MPV.

The Volvo EM90 marks the brand’s debut into the MPV segment. Volvo introduced its flagship electric SUV, the EX90, in November 2022, based on Geely’s SPA2 platform, which is also utilized in Polestar EVs. Initially scheduled for late-2023 production, the launch of the EX90 was postponed to 2024 to allow additional time for software development and testing. Additionally, Volvo unveiled the EX30, its smallest SUV to date, and the EM90, its first-ever multi-purpose vehicle.