Volvo confirmed this Friday that it plans to reduce its stake in Polestar by 62.7% and stop funding the fully electric vehicle brand, in order to focus on its strategy of becoming a 100% electric brand.
The Swedish brand also announced that the shares it owns in Polestar will be distributed among Volvo shareholders, with the majority shareholder being Geely, which holds 79.5% of the Swedish company.
This change will allow Geely to take control of Polestar, as Geely’s chairman, Li Shufu, is one of the main shareholders of the electric car brand.
“As we embark on the next phase of our transformation, preparing to lead next-generation mobility, our focus is on the development of Volvo Cars. The proposed distribution strategically positions Volvo Cars and provides direct exposure to Polestar shares to our shareholders. Given our significant operational collaborations with Polestar and a financial relationship, it makes sense for us to maintain influence through a reduced stake of 18.0% in Polestar,”
