A Volvo C40 Recharge electrical SUV is on show in the course of the Volvo “A New Era of Volvo Cars” press convention at The Shilla Seoul on March 14, 2023 in Seoul, South Korea.
Han Myung-gu | Wireimage | Getty Pictures
Volvo Cars shares surged greater than 21% on Thursday after the Swedish automaker introduced that it’ll cease funding subsidiary Polestar Automotive.
Volvo earlier within the day reported a ten% year-on-year enhance in fourth-quarter internet gross sales to 148.1 billion Swedish krona ($14.16 billion), bringing its full-year 2023 complete to 552.8 billion krona.
The group might hand stewardship of the ailing luxurious automobile model over to majority Volvo shareholder Geely Holding, Volvo Vehicles mentioned on Thursday, in accordance with Reuters.
“This is a natural evolution, I think, between the relationship between Polestar and Volvo. Obviously, we spun out Polestar as a separate company a long time ago, and since then we’ve been incubating and working with Polestar for a number of years,” Volvo Vehicles CEO Jim Rowan instructed CNBC’s Silvia Amaro on Thursday.
“Now, Polestar … they’ve have got a very exciting future ahead of them, they’ve moved from being a one-car company to a three-car company, they’ve got two brand new cars coming out very shortly, in fact in the first half of this year, and that’s going to take them to a new growth trajectory.”
He mentioned this felt like the suitable time for Volvo Vehicles to start lowering its shareholding of Polestar and for the corporate to “look for funding outside of Volvo.”
“That allows us and Volvo as well to fully focus on our growth journey, especially some of the technology investments that we need to make in the next two-three years.”
