Geely says all options open on Volvo AB stake after Daimler sale
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Geely holds an 8.2% stake in the Swedish truck maker, which it acquired in 2018 for around $3.3 billion. However, Geely Chairman Li Shufu said the company is now reviewing its options for the stake following the Daimler sale, which has boosted its cash reserves.
Geely's options for its Volvo AB stake could include selling it to another investor or using it to form partnerships with other companies in the commercial vehicle industry. Li Shufu has previously suggested that Geely could use its stake to help Volvo AB expand in Asia, where Geely has a strong presence.
Volvo AB has been performing well, with the company reporting strong profits in recent quarters. However, the global pandemic has presented challenges for the entire industry, leading some companies to explore new partnerships or divestitures.
Geely's decision on its Volvo AB stake is expected to be closely watched by investors, especially given the recent increase in interest in electric and autonomous vehicles. Volvo AB has been investing heavily in these areas, including the creation of a joint venture with Chinese automaker Luminar to develop advanced LiDAR technology for self-driving trucks.
Overall, while Geely has not yet made a decision on the future of its Volvo AB stake, the company's statement indicates that it is considering all options and could potentially make a significant move in the commercial vehicle industry.
