Geely Holding Group might revive plans for an initial public offering of their Volvo Cars unit, which could be valued at around USD $20bn. Geely Holding bought Volvo Cars from Ford for $1.8bn in 2010; last year, Volvo sold more than 660,000 cars round the world.
Automakers have been searching for ways to fund the enormous investments needed for the sea change toward EVs. In February, Geely Holding scrapped plans to merge Volvo Cars with the Chinese group’s publicly traded unit, Geely Automobile Holdings. They decided instead to bundle the two firms’ powertrain operations into a new company and team up on technology development. A spokesperson for Volvo Cars said the February agreement “enables both companies to explore respective capital market options to realise shareholder value”.
