Volvo Cars Increases Shareholding in Polestar to 49.5 Percent

Volvo Cars has announced that it is acquiring additional shares in Polestar, the Swedish electric performance vehicle brand, which will result in its shareholding increasing to 49.5 percent. It’s acquiring its additional stake from PSD Investment, the private investment company of Eric Li, Chairman of both Volvo Cars and its parent Zhejiang Geely Holding Group.

PSD Investment will remain the second largest shareholder in Polestar.

Polestar leverages manufacturing capabilities from Volvo Cars. For example, the Polestar 3, which is based on Volvo Car Group’s next generation electric architecture, will be built at Volvo Cars´ plant in Ridgeville, South Carolina.  By mid-decade it expects production of future Polestar models in Europe.

In a press statement, Volvo Cars says: ‘The move reflects Volvo Cars’ strong conviction in Polestar’s positioning and exciting potential in the high growth segment for premium electric vehicles. In recent years, Polestar has made significant progress and has established itself as a pioneer in the global market for high-performance electric vehicles as consumers are increasingly looking to combine e-mobility with their environmental aspirations. At the same time, the technologies behind electric vehicles are rapidly advancing and becoming more economical for consumers’.

Volvo Cars established Polestar as a new electric vehicle focused brand and owned 50 per cent of Polestar until a private placement earlier this year diluted Volvo Cars shareholding in the company. Through this transaction Volvo Cars’ share returns to its previous level of close to 50 per cent.

Volvo Cars says it has no plans to increase its stake further or to consolidate Polestar. The acquisition is scheduled to complete shortly, but is subject to certain conditions.

headquartered in Sweden, Polestar has a dedicated R&D facility in the UK and its vehicles are produced in both China and the U.S.