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The automaker, which is controlled by China's Zhejiang Geely Holding, abandoned merger plans with sister brand Geely Automobile in February




Volvo Cars is considering an initial public offering on the Nasdaq Stockholm stock exchange later this year.
The Swedish automaker, which is controlled by China's Zhejiang Geely Holding, abandoned merger plans with its Hong Kong-listed sister brand, Geely Automobile, in February. During that announcement Volvo hinted that it may seek a listing of its own.
Volvo said in a statement Wednesday that the potential listing could be a "logical next step" on the company's "capital market journey."
"[It] could create an opportunity for global investors to participate in our journey to become a leader in the fast-growing premium and intelligent electric vehicle segment while continuing to deliver on what customers expect from the Volvo brand," Volvo CEO Hakan Samuelsson said in the statement.
Previous estimates of Volvo's value have ranged from $8.1 billion to $11.6 billion.
When asked by Automotive News Europe in February about those figures, Samuelsson said: "The valuation only matters on the day that someone is ready to pay."
He said giving Volvo the chance to be evaluated individually rather than as a part of a merger with Geely Auto would be beneficial.



"If you keep the companies separate, they can be evaluated separately. I think the capital markets see that as an advantage," he said in the interview.
In addition, Samuelsson told ANE that he believes Volvo would be interesting to investors for being a "fast transformer." The automaker aims to be an electric-only brand by 2030.
"If we would hypothetically want to be on the market, this transition would be good for our valuation," he said.
Separately, Volvo said it has extended the 70-year-old executive's contract until the end of 2022.
Since taking over as CEO at the automaker in October 2012, Volvo has been on a record-setting course.
Samuelsson's steady hand through multiple crises -- including the current pandemic -- has made him the automaker's longest serving CEO in the last 30 years. He was named an Automotive News Europe Eurostar in 2020.
AutoNews Europe
 

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I never understood why they abandoned the Geely merger — there is considerable parts sharing with various brands in the Geely family using the CMA platform, so why go it alone?

Or is this just some weird complex financial move where they claim independence but the majority of their shares will be owned by Geely anyway so it makes no difference to the company’s operation?
 

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It was Geely Automobile that walked away. Geely is a stronger company financially with double the sales of Volvo so investors were wary of Volvo dragging down Geely's profitability. There also would have been difficulty merging the company cultures.

They will continue to work together on future product. Think of it as Hyundai and Kia being distinct companies under Hyundai ownership but cooperating on platforms and product.
 

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Hopefully one day Volvo can walk away from Geely and go back into a Swedish ownership.
I don't see that happening. That would be equal to Volvo winning the lottery.
 

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Hopefully one day Volvo can walk away from Geely and go back into a Swedish ownership.
Why?
The Swedes gave up on Volvo in the 1990s, when the Volvo Group spun off the carmaker to focus on the more profitable heavy equipment and truck business.

Geely has been by far the best corporate master Volvo has ever had, with Volvo having its best sales years ever under Geely ownership.
 

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Why?
The Swedes gave up on Volvo in the 1990s, when the Volvo Group spun off the carmaker to focus on the more profitable heavy equipment and truck business.

Geely has been by far the best corporate master Volvo has ever had, with Volvo having its best sales years ever under Geely ownership.
because China, and I get it. Not everything has to be Chinese-owned, Chinese-built, Chinese-designed, but it certainly feels that way. I bought a Mazda because it's very Japanese (yes, many are made in Mexico) but I'm sure people buy Wranglers or whatever for similar reasons.
 

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I always assumed Geely bought Volvo to copy everything they do safety wise then when they do that they will get rid of Volvo and produce their own 'Volvo' entirely in China. Eliminating the messy EU-ness of Volvo.

That's what I'd do, it's not like Volvo really adds anything to the car world besides safety. If it wasnt for Geely treating them like a smorgasbord then Volvo would be out there with Saab.
 

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Geely has been by far the best corporate master Volvo has ever had, with Volvo having its best sales years ever under Geely ownership.
This is incredibly true -- I am biased as an owner, but the second-generation XC90 is a 7-year old product and it's still incredibly competitive, likely because they had Geely's financial backing when designing it.

April 2021 was the model's best ever US sales month, which says something when you consider most every other SUV it competes against has been redesigned during its lifecycle.
 

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Not sure how this would translate into Swedish, but good on Volvo. F**k China.

 

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because China, and I get it. Not everything has to be Chinese-owned, Chinese-built, Chinese-designed, but it certainly feels that way. I bought a Mazda because it's very Japanese (yes, many are made in Mexico) but I'm sure people buy Wranglers or whatever for similar reasons.
I’m not pro/against China.
It’s just basic history that Swedish and American companies dropped the ball repeatedly when it comes to Volvo. If Western European or American ownership is what you’re looking for, I guess GM could take a crack at Volvo, but the ghost of Saab would probably scream warning calls. There’s no native British car industry anymore. The Italian car industry has married itself to the Italians, and is busy trying to figure out how to manage 14 overlapping brands. That leaves the Asians. Nissan and Toyota both have premium brands, with varying degrees of success. Toyota doesn’t need a distraction from Lexus. Nissan can barely manage Infiniti. Hyundai/Kia has Genesis. Maybe Volvo rejoins Jaguar/Land Rover, under Tata ownership, but that’s not going so great for Jaguar. Maybe Rivian wants an EV sedan counterpart to its trucks?
 
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