Volvo Cars said it planned to distribute 62.7% of its stake in Polestar.

The stake distribution would be made as a 2:1 share split.

Polestar was founded in 2017 as a joint venture by Volvo Cars and Geely. Volvo owns 48% worth SKR9.5bn (US$920.17m) and would retain an 18% stake after distribution.

The automaker had earlier signalled a “potential adjustment” to its Polestar shareholding.

Volvo Cars chief Jim Rowan said: “As we have significant operational collaborations with Polestar and a financial relationship, it is logical for us to retain influence through a smaller 18% stake.”

Geely Sweden Holdings is a majority owner of Volvo Cars with 78.7% of shares. It would continue to provide operational and financial support to Polestar.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Chinese automaker said it intended to vote in favour of the distribution at Volvo’s 2024 AGM in March where the final proposal would be presented.