2010 Volvo Xc70 3.2 on 2040-cars

Auto blog

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.

Volvo recalls 460,000 cars worldwide for potentially deadly airbags

Volvo and the National Highway Traffic Safety Administration (NHTSA) have released an expanded recall for just shy of 260,000 of its S60 and S80 sedans. Including those 260,000 cars in the U.S., the recall worldwide numbers about 460,000. The recall affects 2001-2009 S60s and 2001-2006 S80s, which have airbag inflators that could have degraded and could blast shrapnel into occupants. If that sounds familiar, it's because the monumental Takata airbag recall was for the same basic reason. But these Volvo devices aren't Takata airbags. Instead, these airbags were manufactured by ZF, the company that builds all varieties of automotive components but is probably best-known among car enthusiasts for their transmissions. The inflators use a material that, when exposed to high levels of moisture, can start to break down and form dust-like particles. These can ignite rapidly, more so than the component was designed for, which can cause the component to break and release metal shrapnel. According to the Associated Press, this material is different than the ammonium nitrate used by Takata. According to the NHTSA documentation, there has been one incident reported concerning the airbags, in which a person died. Volvo will replace all affected airbags at no charge to the customer. The replacement airbag apparently uses a different type of propellant, so it likely won't need to be replaced again. Dealers have already been informed, and owner notices will be going out at the end of November. If you have an affected Volvo, you can call 1-800-458-1552, and the recall number for Volvo is R10125. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Volvo EX90 will lack certain features on launch, to come later with OTA updates

Turns out there's an asterisk to the news of Volvo commencing production of the EX90 at its South Carolina plant this month. The automaker sent an e-mail to customers awaiting delivery that certain features won't be installed on some delivered units, and posted a notice on its customer help site listing the 10 features that could be missing. Four are safety and ADAS features, one of those related to the lidar system, one of Volvo's primary talking points concerning the EX90. The automaker says the "Lidar first safety scenario" will get an "update that increases the car's abilities, even in darkness — and emergency steering is primed if needed to avoid a collision." It sounds like this means there will be some lidar capability, just not the planned breadth.  Four more items deal with the battery and charging. The most unwelcome might be a battery drainage issue while parked, Volvo saying that for the first three days the EX90 is parked without charging it will lose around 3% of battery charge. This is because the core computing system needs to remain on to run the car's "highly advanced functions" — whatever that means — when the SUV isn't being used. After 72 hours, the EX90 "will go into a deep sleep mode to conserve battery power." Why can't the EX90 enter a deep sleep mode an hour after the car is parked? Because software is hard. Smart charging and Plug & Charge could also be lacking, those features making charging less costly or more convenient without extra steps needed from the driver. Bi-directional charging won't come at first, either, so EX90 buyers should hold on to those portable battery banks.  The two final software puzzle pieces are Apple CarPlay, out to lunch for now, and the one we consider most surprising item on the list, a light theme for the driver cluster and infotainment. On delivery, owners should expect a dark theme only on the digital displays. EX90 deliveries aren't slated to begin until later this year, though, so the OTA list could shrink (or grow) before then.