Volvo announced that it would be handing over responsibility for Polestar to Geely and may also release its 48% stake to Volvo shareholders, which would make Geely a direct owner of the business.

The three-year loan facility comes from 12 international banks, and Polestar previously said it would need US$1.3 billion in external funding to break even in in 2025.

CEO Thomas Ingenlath told Reuters: “It is crucial for us to be able to concentrate on rolling out our car programs, and it provides the funds needed to complete the model program that we have with Polestar 2,3 and 4 this year, and the 5 joining in 2025.”

Geely has said it will continue to support Polestar operationally and financially despite Volvo’s planned exit.

Source: Reuters