Volvo to sell a majority of its stake in Polestar

Polestar will continue receiving funding and operational support from Geely.

According to media reports, Volvo has announced plans to sell 62.7% of its stake in Polestar. If the proposed plan goes ahead, Volvo's total stake in the EV maker will reduce to 18%, while its parent company, Geely, will own a majority stake of 78.7%.

In addition to selling off its stake, Volvo also announced that it would cut off its funding to Polestar, citing that the "company is well-positioned for growth."

Jim Rowan, CEO, Volvo Cars, stated, "As we embark on the next stage of our transformation, gearing up to lead in next-gen mobility, our focus sharpens on Volvo Cars’ development."

Polestar, however, will continue receiving funding and operational support from Geely. Rowan stated, "Volvo Cars will not provide further funding to Polestar." He further added, "With Polestar’s strengthened business plan, the launch of Polestar 3 and Polestar 4, and Geely’s commitment and support, the company is well positioned for growth."

Source: Electrek