By Geely’s reduction, Volvo Car’s share price fell by over 11%.

On November 17th, Zhejiang Geely Holding Group announced the reduction of Volvo Cars by 3.3%. After the completion of this transaction, Geely Holding Group will still hold 78.7% of Volvo Cars, and the proceeds from the transaction will be used to support the global development of its sub-brands.

Geely Holding Group told the First Financial Reporter that this move is to further enhance the value of Volvo cars, increase its liquidity and provide more opportunities for institutional and individual investors. According to the rough calculation of Volvo Car’s current share price, Geely Holding will cash in about 350 million US dollars. Affected by this news, Volvo Car’s share price closed down 11.14% to 36.29 Swedish kronor on November 17, local time.

Geely Holding Group has several automobile brands or joint venture brands such as Geely, Link, Krypton, Lotus, Radar, Polar Star and smart. In the first 10 months of this year, Geely exported 340,000 vehicles, second only to.And Chery automobile. Among them, Geely’s new energy automobile brand is accelerating the pace of going to sea and has entered markets such as Europe and the Middle East; Link and smart are also accelerating the global layout, which requires financial support.

On March 28th, 2010, Geely Holding Group formally acquired 100% equity of Volvo Car at a cost of $1.8 billion. Volvo Cars was listed on the Stockholm Stock Exchange in Sweden in October 2021, and the issue price was set at SEK 53 per share. After the listing of Volvo Cars, Geely Holding Group successively reduced its shareholding ratio to 82%. This reduction is the second time that Geely Holding Group has reduced its shareholding in Volvo Cars.

The data shows that when Geely Automobile acquired Volvo in 2010, the annual sales volume of Volvo was 330,000, which was a loss for many years. In 2022, Volvo’s global sales volume was about 698,700 vehicles. In the past 10 years, it maintained a steady growth trend and its profitability continued to improve. Volvo in 2022Operating incomeIt reached 330.1 billion Swedish kronor, a record high;trading profitIt is SEK 22.3 billion, with a profit rate of 6.8%. In October this year, the global sales volume of Volvo Cars reached 59,861, a year-on-year increase of 10%; The sales volume in China market was the same as that in the same period of last year, with 15,041 vehicles.

However, compared with Mercedes-Benz and BMW, the sales gap between Volvo and two German luxury car companies is still widening in the past 10 years.

Author of the article

Xiao yisi