Forget About Getting Your Hands on a Tiny Slice of Volvo

Steph Willems
by Steph Willems
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.

  • MaintenanceCosts All I want is one more cylinder. One more cylinder and I would happily pay the diesel fraud company almost whatever they wanted for it.
  • SPPPP US like Citroen - nothing moves.
  • Jeff S Corey--Thanks again for this serious and despite the lack of comments this is an excellent series. Powell Crosley does not get enough recognition and is largely forgotten even in his hometown of Cincinnati although the Greater Cincinnati and Northern Kentucky Airport has 2 Crosley cars on display. Crosley revolutionized radios by making an affordable radio that the masses could afford similar to what Henry Ford did with the Model T. Both Crosley and Ford did not invent the radio and the car but they made them widespread by making them affordable. I did not know about the Icyball but I did know about Crosley refrigerators, airplanes, cars, and radios.
  • Oberkanone C5 Aircross is the only vehicle that would have any appeal in North America. Can't see it doing well with Citroen badge, maybe a chance with Chrysler badge.
  • Oberkanone 1921 thru 1936 are the best
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