Electric Vehicle All-In Volvo "Pursuing IPO in Sweden"

Photo by AFP

[Asia Economy Reporter Yujin Cho] Volvo Cars, a Swedish automaker owned by China's Geely Holdings, is planning an initial public offering (IPO) in Sweden.

On the 12th (local time), according to The Wall Street Journal (WSJ), Volvo announced that it is considering listing on the Nasdaq Stockholm exchange.

H?kan Samuelsson, Volvo's Chief Executive Officer (CEO), said, "This listing initiative will provide global investors with an opportunity to participate in the journey to become a leader in the growing electric vehicle sector."

This listing move is interpreted as a step in preparation for a full transition to an electric vehicle company. Volvo has set a goal to increase the proportion of electric vehicles to 50% by 2025 and to transition to 100% electric vehicles by 2030.

Previously declaring its ambition to become a leader in the premium electric vehicle segment, Volvo launched its first pure electric vehicle, the XC40 Recharge, last year and is preparing to announce a new model in the 40 series, which will be its second pure electric vehicle.

WSJ also reported that this plan to list in Sweden is partly aimed at strengthening management independence from Geely Holdings.

Geely Holdings acquired Volvo Cars from the U.S. automaker Ford, which was struggling due to the financial crisis, in 2010 for $1.8 billion and has supported Volvo's management normalization and product lineup expansion over the past decade.

Last year, Geely considered a merger plan with Volvo, which had been operated as a separate company, but withdrew the plan earlier this year and decided to maintain a separated corporate structure.

Eric Li, Chairman of Geely Holdings, said, "Volvo has great potential and growth opportunities in the transition to electric and autonomous vehicles," adding, "If the listing proceeds, Geely Holdings will remain only as a major shareholder after the listing."