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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.

Volvo EX90 will be the XC90's all-electric successor

Clarification: Volvo reached out to clarify that the EX90 will be "our new flagship sold alongside XC90 for the foreseeable future" — more of a "successor" than a "replacement." The story has been updated to clarify.     Volvo has announced what we've long suspected. The XC90's successor as the Volvo flagship will be an all-electric crossover. Its name, as officially stated by Volvo, will be EX90, rather than the previously thought EXC90 or even more evocative Embla, and it will be sold alongside the XC90 for a time The primary philosophy of the new flagship, the company says, will be that old Volvo calling card: safety. The automaker promised in a statement that "standard safety in the EX90 will be beyond that of any Volvo before it." They are also reiterating that they're working to be a 100% crash-less and 100% carbon-neutral company. Volvo says the EX90 will cruise down the road with an "invisible shield" of cameras, radar and lidar sensors. They will work in unison to create a "360-degree real-time view of the world," a description that sounds like Tesla's not-quite FSD visualizations that show 3D representations of lanes and traffic movements on the center screen. Volvo says over time the software can reduce serious injury and fatal accidents by 20% and overall crash avoidance by 9%. The software is made to share data from the entire fleet similarly equipped Volvos, learning as it goes.  Inside, the car will monitor driver alertness with algorithms that track eye gaze and focus. Volvo claims the programming is "beyond what has been possible in a Volvo car to date." If the system detects distraction it will respond with increasing levels of assertiveness, starting with "softly nudging". However if the driver falls completely unconscious it's designed to safely pull over and call for help, in what sounds similar to Mazda's Co-Pilot feature or VW's Emergency Assist 2.0. Volvo has not revealed specs or the actual design of the EX90. We suspect it will be based on last year's Volvo Concept Recharge, though it could also look like the unearthed patent images from last month. The Volvo EX90 will be revealed in full on November 9.

Volvo, Daimler, Traton join forces to build electric truck charging network

Volvo Group, Daimler Truck and Volkswagen's AG heavy-truck business the Traton Group announced on Monday a non-binding agreement to build a network of high-performance public charging stations for electric heavy-duty long-haul trucks and buses around Europe. The news was first reported by Reuters. The three major European automakers will invest ˆ500 million (~$593 million USD) to install and operate 1,700 charging points in strategic locations and close to highways. They intend to finalize the agreement by the end of this year and start operations next year, with the hopes of increasing the number of charge points significantly as the companies seek additional partners for the future joint venture. The venture is meant to be a catalyst to prepare for the European Union's goals of carbon-neutral freight transportation by 2050. One of the main deterrents for both individuals and freight companies for switching to EVs has historically been a lack of charging infrastructure. By building that infrastructure, Volvo, Daimler and Traton can also expect to boost their own sales of electric trucks and buses. “It is the joint aim of EuropeÂ’s truck manufacturers to achieve climate neutrality by 2050," Martin Daum, CEO Daimler Truck, said in a statement.  "However, it is vital that building up the right infrastructure goes hand in hand with putting CO2-neutral trucks on the road. Together with Volvo Group and the Traton Group, we are therefore very excited to take this pioneering step to establish a high-performance charging network across Europe.” The partnership between Volvo and Daimler isn't unprecedented. In May, the two competitors teamed up to produce hydrogen fuel cells for long-haul trucks to lower development costs and boost production volumes. This latest venture is another signal that major companies are banding together to solve climate-related issues in the industry. European car industry association ACEA has called for up to 50,000 high-performance charging points by 2030. Traton CEO Matthias Gruendler told Reuters that roughly 10 billion euros would be needed to build out Europe's infrastructure to be fully electrified by 2050. According to a statement released by Volvo, this venture is also a call to action for others with a stake in the industry, like automakers or governments, to work together to ensure the rapid expansion needed to reach climate goals.