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Volvo Cars leaps 22% in IPO stock debut — a big endorsement for EVs

Volvo Cars CEO Hakan Samuelsson at the automakers' stock market opening bell on Friday in Stockholm. (Getty Images)   STOCKHOLM — Volvo Cars shares surged 22% on their Stockholm market debut on Friday after wrapping up Europe's biggest IPO of the year so far, in a boost for new issues markets and carmakers' vision of an electric future. The Gothenburg-based company cut the size of its listing and priced it at the bottom of a previously-announced range UPDATE 3-Volvo Cars gives itself $18 bln price tag as cuts IPO size - Reuters News on Monday, valuing it at just over $18 billion and making it Sweden's second largest listing yet. But the successful deal and strong market reaction — which propels the valuation to about $22 billion — is a lift for a European automotive industry that has embarked on a challenging transition towards electric vehicles (EVs). It also shows that while the euphoria over initial public offerings (IPO) in the first half of 2021 is over, the market is open for new listings of big companies with a story to tell. Volvo Cars Chief Executive Hakan Samuelsson said the listing showed a recognition of its transition plans, adding it would be key for Volvo to demonstrate it is on track to be the "fastest transformer." "There's a much bigger interest in the market to invest in electric car makers than in the conventional ones. So we better do what we said we would," he told Reuters in an interview. Shares in the carmaker, which is majority owned by China's Geely Holding, were trading at 64.70 Swedish crowns ($7.59) at 1057 GMT, after being priced at 53 crowns in the IPO. Polestar Apart from Volvo's commitment to becoming a purely electric carmaker by 2030, it also has a 49% stake in EV venture Polestar, which said in September it would go public through a $20 billion deal. Samuelsson said Polestar had a "good valuation." "They are already electric... showing in a way what the potential would be for Volvo if this (the transformation) is done in the right way." A source familiar with Volvo's transaction said the outcome of this week's IPO was good, even though investors had pushed back and forced Volvo to price at the bottom of the announced range. "The company had to compromise on size and the governance structure. They were hoping for a read across on Polestar, but they were clearly not getting that," the source said, requesting anonymity because they were not authorised to speak to the press.

Editors’ Picks January 2023 | Acura Integra, the new CR-V and more

A new year means another long year of testing and evaluating new metal coming from the automotive industry — we know, tough job, right? It also means another year of new cars making it to our EditorsÂ’ Picks status, and weÂ’re starting out January with a bang. In total, eight new vehicles were EditorsÂ’ Picks this month, including some brand-new models like the redesigned Honda CR-V, Cadillac Lyriq and the ever-controversial Acura Integra. In case you missed our previous Editors' Picks posts, hereÂ’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get an EditorsÂ’ Pick designation. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in January that earned an EditorsÂ’ Pick. 2023 Honda CR-V 2023 Honda CR-V Sport Touring front three quarter View 22 Photos Quick take: An all-around winner, the Honda CR-V is spacious, features easily used technology and looks better than ever. We recommend the efficient hybrid model, but the standard powertrain is a solid option, too. Score: 9.0. What it competes with: Hyundai Tucson, Kia Sportage, Mazda CX-5, Toyota RAV4, Subaru Forester, Nissan Rogue, VW Tiguan, Chevrolet Equinox, Ford Escape, Mitsubishi Outlander Pros: Clean styling; massive interior; efficient engine options; solid infotainment system; many standard safety features. Cons: No base trim levels; lack of specialty options such as plug-in hybrid and off-road models. From the editors: News Editor Joel Stocksdale — "The CR-V is just really good in a lot of ways that really matter. It's enormous inside. It has a clean, stylish exterior and interior. It's solidly equipped. The base engine is pretty underwhelming, but that's rectified with the more powerful, more refined and more efficient hybrid. It simply doesn't do anything badly." Senior Editor James Riswick — "The 2023 Honda CR-V is at its best as the hybrid. While the turbo base engine carries over virtually unchanged, the hybrid is new for 2023. To put it simply, itÂ’s just better to drive. Honda engineers managed to simulate shifts when the gas engine kicks on, providing a more natural driving experience and eliminating the blender-like droning of the outgoing car.

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle