Volvo Cars swaps Polestar debt for equity to aid US plant
Volvo converts $274 million of Polestar debt to equity to consolidate US manufacturing. This move maintains a 19.9 percent stake as Geely seeks to cut costs.
Volvo Cars has reached an agreement to convert approximately $274 million in credit into equity with its sister brand, Polestar Automotive Holding UK PLC. This strategic move is intended to consolidate the production of the Polestar 3 SUV at the company's manufacturing plant in the United States.
The debt-to-equity swap will continue with a second phase in the second quarter of 2026, involving an additional $65 million. This timeline aligns with a similar $300 million conversion by the brands' ultimate parent, Geely Holding, headquartered in China. Upon the completion of these financial maneuvers, Volvo Cars—which previously held a majority stake before a 2024 divestment—will maintain a 19.9% share in the company.
