Volvo Car announced on Thursday that it is currently evaluating a potential adjustment to its shareholding in electric-car maker Polestar. The company also stated that it will no longer provide further funding to Polestar.
Polestar, which was co-founded by Volvo Car and China’s Geely, recently completed a special-purpose acquisition company merger and was listed on Nasdaq in 2022. Over the years, Volvo Car has provided Polestar with loans amounting to $1 billion. In order to support Polestar during this transitional period, Volvo Car has extended the repayment period for the existing convertible loan by 18 months, until the end of 2028.
As Volvo Car progresses into the next phase of its transformation, which involves significant investments in new technologies and production facilities, the company has shifted its focus towards developing its own operations and consolidating its resources accordingly.
Volvo Car stated, “We are therefore evaluating a potential adjustment to Volvo Cars’ shareholding in Polestar, including a distribution of shares to Volvo Cars’ shareholders. This may result in Geely Sweden Holdings becoming a significant new shareholder.” Geely currently holds the majority share of Volvo Car.