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Volvo Cars plans $20 billion stock IPO this month, sources say

STOCKHOLM — China's Geely Holding is in advanced discussions with banks to list its Volvo Cars unit in the coming weeks, three sources told Reuters, in what is expected to be one of Europe's biggest initial public offerings (IPOs) this year. Volvo Cars is aiming for a valuation of about $20 billion in the planned Stockholm listing, the sources said, with one saying the launch was penciled in for the end of September. Goldman Sachs and SEB are leading the transaction, while other banks including BNP Paribas, Carnegie and HSBC are also involved in the deal, the sources added. Volvo Cars declined to comment. Geely did not immediately respond to an emailed request for comment outside normal business hours in China. SEB and Goldman Sachs declined to comment. The other banks were not immediately available. Geely, which bought Volvo from Ford more than a decade ago in the biggest acquisition by a Chinese firm of a foreign car maker, sought to float shares in the Swedish firm in 2018 but then pulled the deal citing trade tensions and a downturn in automotive stocks. Traditional carmakers have fallen out of favor in recent years, as Tesla has risen to be one of the world's most valuable companies, putting the focus on electric vehicles. Many European firms have pivoted toward the electric sector, including Volvo, which aims to only make fully electric cars by 2030 and owns a 49.5% stake in electric car maker Polestar. Valuation Gothenburg-based Volvo Cars aims to secure a valuation of roughly $20 billion, one of the sources said, while another mentioned a possible range of $20 billion to $30 billion. A third source suggested a $16 billion valuation was more realistic, citing the firm's revenue outlook. A $20 billion valuation for Volvo would be equivalent to six to seven times its earnings, a level some analysts say is high although it would put it in line with rivals Daimler and BMW. Tesla's valuation is more than 70 times that. NordLB's automotive analyst Frank Schwope estimated a valuation range of $10 billion to $15 billion. "The strong margins seen in the first half of 2021 are unlikely sustainable as the market benefited from a strong post-pandemic rebound that is unlikely to continue," Schwope said. For Geely's founder Li Shufu, who bought Volvo for $1.8 billion, the listing is a milestone on the road to transport of the future, where cars are part of an electrified network of mobility services generating data and business opportunities.

2025 Volvo S60 the last model year for the sedan in the U.S.

Once Volvo finally got the EX90 headed down assembly lines at the automaker's South Carolina plant, the plant's other product, the S60 sedan, was on borrowed time. A few days after the EX90 news, Instagram account volvo.forlife posted a pic with the caption, "Did you know that with the start of production of the @volvocars #VolvoEX90 at the Charleston, South Carolina plant, the production of the #VolvoS60 will also be coming to an end?" The S60 got about three more days of borrowed time, Volvo telling Road & Track that "After five years Volvo Cars is ending production of the S60 sedan in Ridgeville, South Carolina at the end of June 2024 for the U.S. and some other markets to focus on the all-new EX90." We suspect the sedan would have died earlier if EX90 production had commenced on time. The reprieve could have given the news more time to infiltrate the back channels, and might help explain why S60 sales are up 255% so far this year. Volvo's Chengdu, China plant that also makes the S60 will continue to do so, but those cars aren't coming here. The South Carolina facility can now concentrate on ramping up output of the Volvo EX90, already underway, and the Polestar 3, which commences local shortly. We haven't had an S60 sit through Autoblog exams for a bit, but the the sedan's seen no major revisions since we last drove the current third generation introduced in 2019. We lauded it for fantastic styling, a luxurious interior, and robust tech, dinging it only for a braking system not totally prepared for a driver to enjoy the dynamic potential of a 4,000-pound sedan with 400 horsepower and 472 pound-feet of torque.    That T8 Inscription trim is no more, but the rest of the S60's plaudits remain valid. Until inventory dries up, the S60 comes in three trims priced from about $45,000 to $53,000 before options. All are powered by turbocharged 2.0-liter four-cylinder mild hybrid making a combined 247 horsepower and 248 pound-feet of torque, in front- or all-wheel-drive, and rated to tow 2,000 pounds.    

See Volvo's integration of Apple CarPlay in action

Apple unveiled its new CarPlay touchscreen infotainment system earlier today, and Volvo has just released a video showing the system in action. The Cupertino tech giant is expected to announce partnerships with Ferrari and Mercedes-Benz to license CarPlay, as well, at the 2014 Geneva Motor Show and will be working with even more manufacturers in the future.
The system pairs the driver's iPhone with the car's infotainment system and seamlessly allows them use the smart phone's functions and, at least in Volvo's demonstration, the car's climate control and seat heating systems. According to the video, the new system will be available "in the coming generation Volvo cars," which likely means the upcoming, next-generation Volvo XC90.
However, the system will not work universally. Apple will add functionality through an update to iOS 7 in the future for the iPhone 5, 5C and 5S. At launch other devices won't be supported. Scroll down to watch CarPlay work. We are expecting more details to emerge on the new infotainment system when the Swiss show opens tomorrow.