This should help the carmaker go fully electric sooner than planned.
Volvo is one auto manufacturer to look out for. The Swedish car builder, owned by Zhejiang Geely Holding, has had a brilliant start to 2021 thanks to record-breaking sales and also celebrates the launch of its first fully electric car, the XC40 Recharge. Not only is the brand posting amazing sales figures, but it has recently achieved 80 percent renewable energy usage worldwide, and is currently working on creating a climate-neutral city in the Gothenburg Green City Zone. These are all very ambitious achievements and goals, but Volvo is currently looking at making a seriously risky decision: the Swedish brand is evaluating a potential initial public offering (IPO) of the company on the Nasdaq Stockholm stock exchange sometime this year.
This comes at the same time as the company extends chief executive Hakan Samuelsson's contract to the end of 2022. The move is seen as the logical next step for the company as it would enable shareholders to join management in transforming the company into a fully electric manufacturer of the future, and of course, raise the capital necessary to make the shift.
"We have supported the transformation and growth of Volvo Cars for the last ten years, enabling the company to become a true premium brand with improved profitability," said Eric Li, Chairman of Zhejiang Geely Holding, the parent of Volvo Cars, and Chairman of its Board of Directors. "After a potential listing, Geely Holding would remain a major shareholder."
Volvo is legally required to make this information publicly available in accordance with the EU Market Abuse Regulation, but that hasn't put a damper on the exciting news, as Hakan Samuelsson, chief executive of Volvo Cars makes abundantly clear: "A potential listing on the Nasdaq Stockholm stock exchange 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," he said. Volvo wants to run with the big dogs, and this is definitely one way of doing it.