The Swedish automaker also reported a 10% YoY growth in fourth-quarter net sales, reaching 148.1 billion Swedish krona ($14.16 billion). The full-year total for 2023 amounted to 552.8 billion krona, with adjusted operating income increasing from 12.17 million to 18.38 million krona compared to the same period in 2022.
The group revealed its intention to potentially transfer control of the struggling luxury car brand, Polestar, to Geely Holding, the majority shareholder in Volvo with a 78.65% stake. In Volvo’s full-year report, it highlighted that Polestar is embarking on an exciting new phase with an enhanced business plan and cost-cutting measures. However, Volvo emphasized its focus on developing its own brand and allocating resources accordingly. The company is considering adjustments to Volvo Cars’ shareholding in Polestar, including a share distribution to Volvo Cars’ shareholders, possibly resulting in Geely Sweden Holdings emerging as a significant new shareholder.
Volvo Cars CEO Jim Rowan stated in an interview with CNBC’s Silvia Amaro that the potential adjustment in the relationship between Volvo and Polestar is a “natural evolution.” He highlighted the successful incubation and collaboration with Polestar over the years, emphasizing Polestar’s promising future as it expands its product lineup. With Polestar transitioning from a one-car company to a three-car company, including the launch of two new cars in the first half of the year, Rowan expressed confidence in Polestar’s growth trajectory. Currently holding around a 44% stake in Polestar, Volvo Cars is evaluating options to potentially adjust its shareholding. Analysts had raised concerns about Polestar’s impact on Volvo’s resources after its public listing in June 2022.
Rowan indicated that the present moment seemed appropriate for Volvo Cars to initiate a reduction in its shareholding of Polestar and explore external funding opportunities for Polestar beyond Volvo’s direct involvement.
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