2021 October 29, Hangzhou. Zhejiang Geely Holding Group (Geely Holding), China’s largest private-owned automotive group, today welcomed new equity investors to Volvo Cars following the completion of an initial public offering on the Nasdaq Stockholm exchange valuing the Swedish premium automotive group at SEK 158 billion.
Geely Holding, which acquired Volvo Cars in 2010, has overseen a significant increase in the value of its Scandinavian subsidiary in a decade which has seen the automaker expand its manufacturing footprint to include plants in China and the US, achieve record volume sale and to embark of a transition strategy to full electrification.
Eric Li, Founder and Chair of both Geely Holding and Volvo Cars, said: “We are proud of the success achieved by Volvo Cars, which has flourished as part of Geely Holding Group to become the fastest transformer in the global premium segment. By delivering on this strategy as a newly listed company, Volvo Cars will be well placed to generate sustainable long-term value for institutional and retail investors – a vision and commitment that we fully support as the company’s ongoing lead shareholder.”
Daniel Li, Chief Executive of Geely Holding and board member in Volvo Cars, added: “The listing of Volvo Cars is a landmark event for the company and its owners. After realising a ten-fold increase in value over the past decade, Geely Holding has demonstrated the benefits of its approach to long-term support to and its willingness to delegate strategic autonomy to management, which has enabled Volvo Cars to achieve record results. We look forward to Volvo Cars’ continued growth as Geely Holding accelerates its own transformation to becoming a diversified transport technology and mobility services group.”
Since Geely Holding acquired Volvo Cars as a sister brand to Geely Auto, the Hong Kong listed entity in which it is also lead shareholder, the Group has built a brand portfolio that includes a controlling stake in PROTON of Malaysia, the iconic Lotus Cars as well as LEVC, the UK electric taxis and commercial vehicles group, and the creation of entirely new brands including Lynk & Co, and Zeekr. Geely Holding’s portfolio includes the smart joint venture with Daimler AG, in which it is the largest strategic investor, and a significant stake in AB Volvo, the Swedish commercial vehicles and engineering group.
In parallel with the fastest-transformer strategy under way at Volvo Cars, Geely Holding’s other automotive brands are focused on increasing electrification, an acceleration of autonomous drive technologies and the provision of new services including ride-hailing and data-connectivity.
“We see next-generation technologies and diversified share-ownership as mutually beneficial,” said Daniel Li. “We will continue to explore ways to unlock value across our portfolio as we pioneer new architectures, powertrains and mobility solutions to meet customer demand around the world.”