Volvo Cars today announces that it is acquiring additional shares in Polestar, the electric performance vehicle brand, which will result in its shareholding increasing to 49.5 per cent.
The move reflects Volvo Cars’ strong conviction in Polestar’s positioning and exciting potential in the high growth segment for premium electric vehicles. In recent years, Polestar has made significant progress and has established itself as a pioneer in the global market for high-performance electric vehicles as consumers are increasingly looking to combine e-mobility with their environmental aspirations. At the same time, the technologies behind electric vehicles are rapidly advancing and becoming more economical for consumers.
Polestar leverages manufacturing capabilities from Volvo Cars. As recently announced the Polestar 3, which is based on Volvo Car Group’s next generation electric architecture, will be built at Volvo Cars´ plant in Ridgeville, South Carolina. By mid-decade it expects production of future Polestar models in Europe.
Volvo Cars established Polestar as a new electric vehicle focused brand and owned 50 per cent of Polestar until a private placement earlier this year diluted Volvo Cars shareholding in the company. Through this transaction Volvo Cars’ share returns to its previous level of close to 50 per cent.
Volvo Cars is acquiring its additional stake from PSD Investment, the private investment company of Eric Li, Chairman of both Volvo Cars and its parent Zhejiang Geely Holding Group. PSD Investment will remain the second largest shareholder in Polestar.
Volvo Cars has no plans to increase its stake further or to consolidate Polestar. The acquisition is scheduled to complete shortly, but is subject to certain conditions.
Volvo Car Group in 2020
For the 2020 financial year, Volvo Car Group recorded an operating profit of 8.5 BSEK (14.3 BSEK in 2019). Revenue over the period amounted to 262.8 BSEK (274.1 BSEK). For the full year of 2020, global sales reached 661,713 cars (705,452), a decline of 6.2 per cent compared to 2019.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales of 661,713 cars in 2020 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding since 2010.
As of December 2020, Volvo Cars employed approximately 40,000 (41,500) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for APAC is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).
Under its new company purpose, Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This purpose is reflected into a number of business ambitions: for example, by the middle of this decade it aims for half of its global sales to be fully electric cars and to establish five million direct consumer relationships. Volvo Cars is also committed to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.