Forget About Getting Your Hands on a Tiny Slice of Volvo

forget about getting your hands on a tiny slice of volvo

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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  • Asdf Asdf on Sep 10, 2018

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

    • See 2 previous
    • Inside Looking Out Inside Looking Out on Sep 10, 2018

      @barksdale I can add more: European Polaroid, Chinese Kodak, Japanese Xerox. BTW who owns GE? Is it Chinese company too?

  • Advance_92 Advance_92 on Sep 10, 2018

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

  • Snickel Fritz I just bought a '97 JX 4WD 4AT, and though it's not quite roadworthy yet I am already in awe of it's simplicity and apparent ruggedness. What I am equally in awe of, is the scarcity of not only parts but correct information regarding anything on this platform. I'm going to do my best to get this little donkey back on it's feet, but I wouldn't suggest this as a project vehicle for anyone who doesn't already have several... and a big impressive shop with a full suite of fabrication/machining/welding equipment, and friends with complimentary skillsets, and extra money, and... you get the idea. If you don't, I urge you to read up on the options for replacing anything on these rigs. I didn't read enough before buying, and I have zero of the above suggested prerequisites... so I'm an idiot, don't listen to me. Go buy all of 'em!
  • Bryan Raab Davis I actually did use the P of D trope, but it was only gentle chiding, for I love old British cars of every sort.
  • ScarecrowRepair The 1907 Panic had several causes of increased demand for money:[list][*]The semi-annual shift of money between farms and cities (to buy for planting and selling harvests)[/*][*]Britain and Germany borrowing for their naval arms race[/*][*]San Francisco reconstruction borrowing after the 1906 earthquake and fire[/*][/list]Two things made it worse:[list][*]Idiotic bans on branch banking, which prevented urban, rural, and other state branches from shifting funds to match demands. This same problem made the Great Depression far worse. Canada, which allowed branch banking, had no bank failures; the US had 9000 failures.[/*][*]Idiotic reserve requirements left over from the Civil War which prevented banks from loaning money; they eventually started honoring IOUs illegally and started the recovery.[/*][/list]Been a while since I read up on it, so I may have some of the details wrong. But it was an amazing clusterfart which could have been avoided or at least tamed sooner if states and the feds hadn't been so ham handed.
  • FreedMike Maybe this explains all the “Idiots wrecking exotic cars” YouTube videos.
  • FreedMike Good article! And I salute the author for not using the classic “Lucas - prince of darkness” trope, well earned as it may be. We all know the rap on BL cars, but on the flip side, they’re apparently pretty easy to work on (at least that’s the impression I’ve picked up). On the other hand, check the panel fits on the driver’s and passenger’s doors. Clearly, BL wasn’t much concerned with things like structural integrity when it chopped the roof off a car designed as a coupe.