Volvo Cars announced that it will no longer finance Polestar, the Swedish electric vehicle brand, transferring this responsibility to Chinese company Geely, which is the majority shareholder of Volvo.
The Swedish brand also revealed that it is evaluating a potential adjustment of its stake in Polestar, including a distribution of shares to its shareholders, with Geely being the main recipient. However, Volvo confirmed that it will continue as a strategic partner of Polestar in the areas of R&D, production, as well as in after-sales and commercial areas.
Volvo Cars’ decision comes at a time when the brand plans to intensify its electrification strategy with a strong investment for the creation and implementation of new technologies and production facilities adapted to the future.
On the other hand, Geely has already announced that it will fully support Polestar as an independent brand, which will not affect its 79% stake in Volvo.
It is worth mentioning that Polestar was created in 2017 as a joint venture between Volvo and Geely, and currently the Swedish brand holds a 48.3% stake in Polestar.
