By Dominic Chopping

 
STOCKHOLM--Volvo Car is evaluating a potential adjustment to its shareholding in Polestar and will no longer provide further funding to the electric-car maker, it said Thursday.
 
Polestar was founded by Volvo Car and China's Geely and completed a special-purpose acquisition company merger and listed on Nasdaq in 2022. Volvo Car has provided Polestar with loans totaling $1 billion and said it will extend the repayment period for the existing convertible loan by 18 months to the end of 2028.
 
As it moves into the next phase of its transformation, including deploying large-scale investments in the creation and adoption of new technologies and production facilities, Volvo said its focus is on developing the company and concentrating its resources on its own needs.
 
"We are therefore evaluating a potential adjustment to Volvo Cars' shareholding in Polestar, including a distribution of shares to Volvo Cars' shareholders," it said. "This may result in Geely Sweden Holdings becoming a significant new shareholder."
 
Geely is Volvo Car's major shareholder.
 
Write to Dominic Chopping at [email protected]