Volvo puts brakes on Stockholm listing plan

VOLVO has pulled plans to list in Stockholm as the global trade war dents automotive stocks.

Chinese parent company Geely had been discussing a float valuing the Swedish car maker at up to £23bn.

However, bosses feared investors might lose out amid an uncertain market.

Volvo chief executive Hakan Samuelsson said: ‘It’s important to know that we have headroom so we can look the investors in the eye a year after the initial public offering.

‘It is still an option, a very realistic option, but will not happen immediately. The timing has to be optimal.’

Car makers are facing uncertainty from President Trump’s trade war, with threats of higher tariffs on imports to the US. There is also political volatility in Sweden, with early results from Sunday’s general election showing no party set to win a clear majority. The anti-immigration Sweden Democrats party may be a possible kingmaker as it made gains.

As well as the market volatility, sources said that Geely and its boss Li Shufu felt Volvo should make deeper inroads into the Chinese market before listing.

Volvo delivered 61,480 cars in China in the first half, a fraction of BMW’s and Audi’s sales.

Samuelsson, meanwhile, said of luxury brand Aston Martin’s looming IPO: ‘I wish them luck.’