Volvo May Not Be Worth As Much As Its Owners Thought

Industry News

A lower valuation could force Geely to hold off on launching an IPO.

Plans to take Volvo public on the stock exchange appear to have taken a hit as the Swedish automaker may not be worth as much as its owners initially thought. According to a recent report from Bloomberg, “select institutional investors” have estimated the value of Volvo Cars somewhere between $12-18 billion. And while that may seem like a lot of money to most of us, it's far below the $16-30 billion that its Chinese owners at Zhejiang Geely Holding Group were hoping for. So they may very well choose to hold on to all its shares in Volvo for the time being, rather than float an Initial Public Offering based on a lower valuation.

The revelations could prove a rare hiccup in Geely's ambitious business expansion which saw it acquire Volvo Cars from Ford in 2010. It acquired its longstanding Polestar performance and racing partner in 2015, and is in the process of relaunching it as a standalone electric-vehicle brand. Geely and its Volvo subsidiary also collaborated to launch the Lynk & Co brand in 2016.

Geely also bought the London Taxi Company in 2013, relaunching it as the London Electric Vehicle Company. It bought Lotus just last year, and recently took a 9.7-percent stake in Mercedes parent company Daimler.

You Might Also Like
10 Cars That Make Us Miss Pop-Up Headlights
10 Cars That Make Us Miss Pop-Up Headlights
Can't Afford A New Mercedes GLE? Here Are 7 Cheaper Alternatives
Can't Afford A New Mercedes GLE? Here Are 7 Cheaper Alternatives

With all these acquisitions and investments of capital, Geely was evidently hoping to raise some cash by selling some of its shares in Volvo. The original plan, according to Bloomberg, was to list Volvo shares on stock markets in both Hong Kong and Sweden as early as this fall. But with its shares now valued at less than what it hoped, it's likely to delay those plans at least until it can raise the brand's earnings and its value to investors.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

5 Things You Need To Know About The 2019 BMW X5

After driving the car for the first time, here are our key takeaways.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Kim Jong-un Gets Classy With New Ride

So much for sanctions.

Drifting A 1,000-HP Corvette On Mountain Roads Takes Some Serious Skill

Thought drifting the entire Nurburgring was challenging? Try it in a 1,000-hp Corvette on a mountain road with no safety rails.

Hennessey Heritage Edition Ford Truck Makes More Power Than Anything You’ve Got

This crazy beast is even more powerful than the Ford GT.

Ford Imagines A Future With No Traffic Lights

Stopping at junctions could be a thing of the past in the future.

One-Off Ferrari 330GT Speciale Is A 50-Year-Old Dream Come True

This stunning coachbuilding project is a tribute to legendary Italian designer Giovanni Michelotti.

What's Hot

Related Cars

Starting MSRP

Related Reviews

2017 Volvo S60 Sedan Review
Volvo S60 Sedan
2017 Volvo S60 Sedan Review
2019 Volvo S60 First Look Review: Designed In Sweden, Built In The USA
First Look
2019 Volvo S60 First Look Review: Designed In Sweden, Built In The USA