On February 1st, Volvo announced that it is evaluating its equity adjustment in Polestar. "As Volvo Cars undergoes its next phase of transformation, including technological innovation and future suitable production facilities, it will focus on developing Volvo Cars." Volvo Cars stated that it will no longer provide further financial support to Polestar Motors and may distribute its shares to other shareholders. Geely Sweden Holdings will become an important new shareholder of Polestar Motors.
Meanwhile, Volvo Cars will extend the repayment period of existing convertible loans by 18 months until the end of 2028. Currently, Volvo Cars holds 48% of the shares in Polestar Motors.
On the same day, Geely Holding Group expressed its support for Volvo Cars to make potential adjustments to its stake in Polestar, in order to concentrate resources to promote Volvo Cars' own transformation and development. If the equity adjustment is completed, Geely Sweden Holdings, a subsidiary of Geely Holding Group, will become an important shareholder of Polestar. Geely will continue to fully support the future development of the Polestar brand in terms of operations and finance, expanding synergies in basic technology, supply chain, manufacturing, and other areas.