Volvo indefinitely delays IPO plans over uncertainty of trade war and automotive industry

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Volvo Cars and its Chinese parent Geely had discussed listing in Stockholm (Source: Getty)

Volvo Cars has indefinitely delayed plans for a listing in Stockholm due to trade tensions and a down turn in automotive stocks.

The Swedish carmaker and its Chinese owner Geely had planned an initial public offering valuing the company between $16bn (£12.4bn) and $30bn.

Chief executive, Hakan Samuelsson told Reuters: “We have come to the conclusion that the timing is not optimal for an IPO right now.”

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The company did not rule out a listing in the future but Samuelsson said a decline in automotive shares had hurt the IPO prospects of the business.

Geely, which paid Ford Motor Co $1.8bn for Volvo in 2010, has stakes in Daimler, truckmaker AB Volvo and Lotus.

The company concluded that Volvo should make more ground in the Chinese market before listing, a source told Reuters.

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Aston Martin will go ahead with its proposed £5bn float later this year and it could formally announce its intentions later this week.

Samuelsson said: “I wish them luck with their IPO.”