By on September 10, 2018

After hiring financial advisors earlier this year, a move many believed was a precursor to an initial public offering (IPO), Volvo parent company Geely now claims the waters are too choppy to float any shares in the resurgent Swedish automaker.

First reported by the Financial Times this past weekend, the Chinese holding company says there’s too many uncertainties and headwinds in the industry right now. Thus, no Volvo stock for you. The biggest uncertainty is the one that’s keeping automakers on edge the world over.

The thorny issue of trade rears its head here, with the U.S.-China trade war and concern about American relations with Europe heading down a similar path factoring into the decision, the automaker claims. The trade situation led to nervous investors and a weakening of automotive stocks, serving up another warning sign for Volvo’s parent.

Now postponed indefinitely, a Volvo IPO could still come to pass after the global situation stabilizes.

“We’ve come to the conclusion that the timing is not optimal for an IPO right now,” Volvo Chief Executive Hakan Samuelsson told Reuters. Sources said Geely planned to value Volvo at $16 billion to $30 billion — a figure some analysts questioned. While Volvo has said it will tailor XC60 production to avoid pricey tariffs, Geely boss Li Shufu apparently feels the Volvo brand isn’t yet big enough in the world’s largest auto market (China), other sources claim.

Volvo’s volume in China is nowhere near as high as its established German luxury rivals. Still, Samuelsson seemed most concerned about large Swedish public pension funds buying up Volvo stock, only to have the deflated market kibosh a quick return.

[Image: Volvo Cars]

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9 Comments on “Forget About Getting Your Hands on a Tiny Slice of Volvo...”

  • avatar

    I can’t imagine Volvo could be worth much as an IPO since everyone is predicting that in 5 years we will all be sharing one self-driving electric car.

  • avatar

    Publicly traded companies suck. The priority always shifts from making quality products that customers enjoy, to improving profit margins for the investors. There is no company that can grow indefinitely, and once growth slows the investors dump the company. At that point the company has shitty products and no value. /rant.

  • avatar

    I would say they finally have a winning portfolio of vehicles, but yeah, to much up in the air in the auto industry. Not just Chinese tariffs. Not to mention that Volvo still needs more volume. I don’t really know what global sales are, but Would think they are way down there toward the bottom. If I cant have the stock, which I doubt I would purchase anyway, I would very much like to own a new Volvo. I am patiently awaiting the V60.

  • avatar

    The time to sell – er, issue an IPO – is when the big money has already been made and the greater fools are lining up to fund your retirement.

    Volvo might be on an upswing in 2018, but when it comes to attracting Dumb Money it can’t compete with Tesla, Bitcoin or medical marijuana.

  • avatar

    Volvo is not a Swedish automaker, but a CHINESE automaker.

    • 0 avatar

      Hahahahahahahaha! It gets funnier every time. Dutch-Italian Jeeps and RAM trucks. Belgian Budweiser. Chinese AMC Movie Theaters. Etc Etc. Turns out we live on a planet with other people. Who knew?

      Asdf brain twister: Is a Chinese-Made Buick an American car because the ownership is American?

      What country are you from Asdf?

    • 0 avatar

      Will you finally explain what your issue is?

      When Daewoo was purchased by GM, that didn’t make them American cars.

      When Opel was owned by GM, there was nothing “American” about their cars.

      Location of corporate ownership doesn’t define the character of the company. The decisions are made in Sweden. The development occurs in Sweden.

  • avatar

    I wonder if Volvo is thinking they should have built that S60 factory in Halifax.

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