Volvo Increases Shareholding in Polestar to 49.5 Percent
July 14, 2021—Volvo Cars announced Monday it had acquired additional stocks in electric vehicle performance brand Polestar, boosting its shareholdings in the company to 49.5 percent.
According to a news release, the move will return Volvo's share in the company to where it was at early this year before "private placement ... diluted Volvo Cars shareholding in the company." Volvo parent company Geely describes the two brands as independent, with Polestar being co-owned by Volvo.
"The move reflects Volvo Cars’ strong conviction in Polestar’s positioning and exciting potential in the high growth segment for premium electric vehicles. In recent years, Polestar has made significant progress and has established itself as a pioneer in the global market for high-performance electric vehicles as consumers are increasingly looking to combine e-mobility with their environmental aspirations."
Volvo recently announced Polestar would be would be developing a new high-performance EV at Volvo's Ridgeville, South Carolina, plant.