Volvo said in its latest financial report that it will be diluting its shares in what was previously its subsidiary, Polestar, which has struggled with dwindling global sales in recent times. Geely Sweden Holdings is set to be Polestar’s new majority stakeholder. As a result, Volvo Cars will no longer provide further funding to Polestar, while extending the repayment period for an existing loan till the end of 2028. The statement, however, also said that both Volvo and Polestar will still maintain their association in terms of research and development, manufacturing, after-sales and the commercial side.
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Alongside, Volvo also released its financial statement for 2023, which revealed that its 2023 revenues stood at SEK 399.3 billion in 2023, an increase of 21 per cent over last year. The company revealed that its profit margins saw an increase in 2023, from the corresponding year when Lithium prices affected its margins. The company’s sales amounted to 7,08,716 cars in 2023, with sales of fully electric cars (1,13,419 units) increasing by 70 per cent and representing 16 per cent of its total global sales volume. It speculates that EV-only sales will further increase in 2024, with three new EV launches scheduled for 2024- the EX30, EX90, and EM90 MPV.
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The Volvo EM90 is the first MPV from the brand
Volvo revealed its flagship electric SUV, the EX90 in November 2022, based on Geely’s SPA2 platform that is also featured in EVs from the Polestar brand. While the vehicle’s production was initially supposed to start by late-2023, the company later made the decision to allocate additional time for ‘software development and testing’, pushing its production to 2024. The brand later revealed the EX30, its smallest SUV to date, along with the EM90, the first-ever multi-purpose vehicle (MPV) from the Swedish carmaker.
