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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 studying test of electric roads in Sweden

Volvo already announced the results of a study of wireless charging using a stationary C30, and now it's embarking on a more ambitious study of wireless charging involving moving city buses. Next year, in conjunction with the Swedish Transport Association, Volvo will build a section of electric road up to 500 meters long that would use inductive charging to refill the batteries while the bus drives over it.
Right now, the company's Hyper Bus diesel hybrid has to stop to plug in and charge at the end of its route. The company is looking for a way to keep buses in service while being able to run on electric power for greater lengths of time. The new line used for the study will be called ElectriCity, and will come online in central Gothenburg sometime in 2015. There's a press release below with more information.

Volvo to unveil permanent high-beam headlamp technology [w/video]

Volvo will be showing off its Active High Beam technology at the Geneva Motor Show next week. The system will allow drivers to use their high beams all the time and adds another responsibility to the cameras mounted by the rearview mirror, making them detect traffic ahead, whether it be another car or a truck or motorcycle and in the same lane or oncoming. When a vehicle is detected, a special projector in the Xenon lamps can block out only the portion of the high beam that would impair the other driver. Volvo says the system is accurate down to a 1.5-inch margin around another object.
Active High Beam will be fitted to the Volvo S60, V60 and XC60 and we have to assume they mean the non-US versions of those cars. Audi has a similar technology that it calls "matrix beam lighting," and due to the way the US Federal Motor Vehicle Safety Standard code is written, such active control of high beams is verboten on cars sold here.
The Swedish brand also plans to present a collision-avoidance technology it's calling a "world-first." The press release below has more information and the accompanying video demonstrates the lighting tech.