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Volvo's $2.9 billion stock IPO is a key test in shift to EVs

Volvo Car AB is looking to raise 25 billion kronor ($2.9 billion) in a Stockholm initial public offering in a test for automakers amid the transition to electric vehicles. The Swedish carmaker, owned by China’s Zhejiang Geely Holding Group Co., is offering shares at 53 kronor to 68 kronor each (about $6-$8), according to a statement Monday.  The deal values Volvo Cars at as much as $23 billion, 11 years after the Chinese firm bought the business from Ford Motor Co. for $1.8 billion. The IPO is set to be EuropeÂ’s largest since January, according to data compiled by Bloomberg. The carmaker, with an ambitious plan to only sell full electric cars by 2030, plans to use the funds to add carmaking capacity so it can nearly double annual sales to more than 1.2 million vehicles. Volvo Cars also plans to construct a battery plant in Europe. “We have a very clear strategy to be an electric company in 2030 and weÂ’ve been on that journey for some years now,” Volvo Cars CEO Hakan Samuelsson said in an interview. “With this, of course, we can secure that transformation, because of course, itÂ’s not free of charge.” VolvoÂ’s projected market capitalization of about $20 billion compares to roughly $65 billion for BMW AG, while the German premium carmaker produces more than 2 million vehicles versus Volvo CarsÂ’ 660,000 last year. Newer entrants to the industry such as ChinaÂ’s Nio Inc. and Tesla Inc. have seen their share prices surge past traditional manufacturers even as they sell only a fraction of the number of vehicles. The IPO also comes less than a month after electric-vehicle maker Polestar, controlled by Volvo Cars and Geely, said it will go public in New York via a blank-check merger. The deal implies an enterprise value of $20 billion for the startup, with Volvo Cars expecting to hold a 50% stake in Polestar after it lists. While the century-old Swedish industry stalwart and Polestar have similar valuations, 4-year-old Polestar has a target of delivering only about 29,000 cars this year. Geely previously attempted to take Volvo Cars public in 2018, but called off the listing after investors were said to balk at its valuation expectations of as much as $30 billion.  A group of pension funds and institutional investors have committed to buying 6.4 billion kronor worth of shares in the IPO. The offering of as much as 21% of Volvo Cars runs through Oct. 27, and the shares are set to start trading in Stockholm on Oct. 28. Goldman Sachs Group Inc.

Volvo shows inflatable child seat concept [w/video]

Volvo is bringing its emphasis on safety and design to the littlest members of the family with its concept for an inflatable, rearward facing child safety seat. The design is meant to help traveling families by offering a lighter and less bulky alternative to traditional car seats.
The design is quite ingenious. The seat is covered in drop-stitched fabric, which fills with air to create the form of the seat. An electric motor in it allows inflation and deflation in less than 40 seconds, according to Volvo. It weighs less than 5 kilograms (11 pounds) and folds small enough when collapsed to fit into a bag. It even has a Bluetooth connection, so parents can begin expanding it remotely.
The inflatable seat in the brainchild of Lawrence Abele, Volvo's design manager at its Monitoring and Concept Center in Los Angeles, CA. "For many, travelling with young children is a challenge; any assistance to simplify the parents' life with young children is a great thing," he said in a statement released by Volvo. The chair remains a concept for now, and the automaker isn't saying whether it's going to put it into production, but it's a clever solution to a common problem. Scroll down for a video showing it in action and to read the release.

US could get Chinese Volvos soon, possibly Geely joint-venture subcompact?

After a little more than three years since Volvo was acquired by China's Geely, it was only a matter of time before products from this marriage started to show up in the US. Although nothing seems to be written in stone, Automotive News is reporting that the US could be getting Chinese-made Volvos sooner rather than later.
In speaking with AN, Volvo CEO Hakan Samuelsson said that Chinese Volvos could be exported to the US "fairly quickly," and while there was no word on any specific models being considered, the article points out that the S60 (shown above) is already being produced locally in China at a Volvo plant. Another possibility is the next-gen V40, which has reportedly received plenty of support from US Volvo dealers. Regardless of which model it is, Samuelsson doesn't seem too worried about a "Made in China" car receiving a negative reaction by US consumers, pointing to all the other Chinese products sold here.
On a global scale, AN is also reporting that Geely is working on a new subcompact platform co-developed with Volvo to compete against cars like the Honda Fit, Ford Fiesta and VW Polo. There is no word as to whether or not this Geely-branded model would be coming to the US, but just last year, we heard that the Chinese automaker is looking to break into the US market by 2016.