Volvo Cars to swap $300 million of Polestar debt to equity to consolidate US manufacturing
31/03/2026 07:52
STOCKHOLM, March 31 (Reuters) - Volvo Cars VOLCARb.ST said on Tuesday it had agreed to convert into shares about $274 million in credit with its sister brand Polestar PSNY.O, aiming to consolidate plans to produce Polestar 3 cars at its U.S. plant in South Carolina. Volvo Cars will carry out a second conversion of about $65 million in the second quarter of 2026, at the completion of a similar swap of about $300 million by the companies' ultimate parent Geely Holding GEELY.UL. Following the conversion, Volvo Cars, formerly the majority stakeholder in Polestar before divesting most of it to Geely in 2024, will keep a stake of about 19.9% in the company. The move underscores tighter integration between Volvo Cars and Polestar, both majority‑owned by Geely Holding, as the Chinese group looks to cut costs, improve scale and share manufacturing capacity across brands. On Monday, Volvo Cars said it would become the exclusive distributor of Lynk & Co cars in Europe, another Geely sister brand. (Reporting by Marie Mannes in Stockholm and Alessandro Parodi in Gdansk, editing by Milla Nissi-Prussak) ((Alessandro.Parodi@thomsonreuters.com;))