Geely Buys $3.3 Billion Worth of Volvo Trucking Shares
Volvo’s owners aren’t done buying Volvos, apparently. China’s Geely, not satisfied with just owning the Swedish carmaker, has purchased an 8.2 percent stake in the Swedish heavy truck-maker.
Volvo Cars and AB Volvo, the maker of big trucks, split up back in 1999, and the company has spent the last two decades making heavy equipment. Thanks to a few building booms around the world and some cost-cutting measures over the last few years, AB Volvo is currently turning over a nice profit, which apparently enticed Geely.
With a 45 percent stake in Dongfeng Commercial Vehicles, AB Volvo also has strong ties to China, which may have sweetened the deal.
SEE ALSO: Geely Invests $750 Million in Polestar as it Looks to Take on Tesla
“Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Li Shufu, Geely CEO, said in a statement.
Despite the fact that Geely now has an interest in both Volvos, there are no plans to reunite the two Gothenburg companies. As it stands, they apparently work best separately.
The purchase cost more than 27 billion Kroner ($3.26 billion) according to Reuters’ calculations.
A version of this story originally appeared on Swedespeed.
Sebastien is a roving reporter who covers Euros, domestics, and all things enthusiast. He has been writing about the automotive industry for four years and obsessed with it his whole life. He studied English at the Wilfrid Laurier University. Sebastien also edits for AutoGuide's sister sites VW Vortex, Fourtitude, Swedespeed, GM Inside News, All Ford Mustangs, and more.
More by Sebastien Bell
Comments
Join the conversation