Volvo Ab Stock Price, News & Analysis

Volvo Group Venture Capital has announced an investment in Foretellix Ltd, a company specializing in safety for autonomous vehicles.

This funding aims to enhance Foretellix's verification platform, ensuring automated driving systems are safe and ready for commercialization. The partnership, formed earlier in March 2021, will focus on developing a coverage-driven verification solution for public and restricted road use. Volvo emphasizes the importance of this investment in advancing safe autonomous driving technology.

On July 20, 2021, the Volvo Group reported strong demand in Q2 2021, with net sales rising by 24% to SEK 90.6 billion despite challenges like semiconductor shortages. The adjusted operating income surged to SEK 9.7 billion, achieving an operating margin of 10.7%. The divestment of UD Trucks contributed to financial performance, with SEK 19 billion returned to shareholders. Operating cash flow improved to SEK 5.9 billion. The company also announced a collaboration for a public charging network in Europe.

Volvo Group's subsidiary Mack Trucks announced that the New York City Department of Sanitation (DSNY) plans to purchase seven Mack LR Electric refuse models for operation across the city's boroughs. The order follows successful real-world testing of a demonstrator model in Brooklyn. Mack senior vice president Jonathan Randall highlighted the order as a testament to the vehicle's performance, aiding NYC's zero-emissions goals. The vehicles will be charged using DC fast chargers, with serial production starting in 2021 at Mack's facility in Pennsylvania.

AB Volvo held an Extraordinary General Meeting on June 29, 2021, where it was resolved to distribute an extra SEK 9.50 per share to shareholders. The record date for the distribution was set for July 1, 2021. This decision reflects the company's commitment to returning value to its investors. The complete resolutions from the meeting will be available for review. The Volvo Group continues to focus on delivering sustainable transport and infrastructure solutions, with net sales of approximately SEK 338 billion in 2020.

Volvo Group's climate targets have been validated by the Science Based Targets initiative (SBTi) to align with the Paris Climate Agreement, aiming for a maximum temperature rise of 1.5°C. CEO Martin Lundstedt stated that the company leads industry standards with an ambitious emission reduction goal of 40% per vehicle km for trucks and buses by 2030. Additionally, Volvo commits to net-zero value chain emissions by 2040, ahead of the SBTi's deadline. The company covers 95% of sold products in its targets, exceeding SBTi requirements.

On June 3, 2021, AB Volvo announced its Extraordinary General Meeting to be held on June 29, 2021, conducted solely through advance voting due to COVID-19 restrictions. Shareholders must be registered by June 18, 2021, and must cast votes by June 28, 2021. The meeting agenda includes the election of a chairman, approval of minutes, and a proposed extraordinary dividend of SEK 9.50 per share, with distribution set for July 6, 2021. Further details are accessible on Volvo's website.

Volvo Penta has announced the acquisition of ZEM, a marine battery systems supplier based in Norway, to enhance its position in marine electromobility. ZEM, with over 12 years of experience, has developed battery solutions for various maritime applications. This acquisition aligns with Volvo's sustainability goals and aims to leverage ZEM's expertise to accelerate product development in electric and hybrid marine solutions. Though ZEM will continue to operate independently, this collaboration is expected to expand Volvo Penta's capabilities in a rapidly evolving market.

AB Volvo's Board of Directors has proposed a distribution of proceeds from the sale of UD Trucks, amounting to SEK 9.50 per share, which totals approximately SEK 19 billion. An Extraordinary General Meeting is scheduled for June 29, 2021, to vote on this proposal, with the record date for distribution set for July 1, 2021. The Board emphasizes that even after the distribution, the company remains financially robust, allowing for continued investments in future technologies aimed at sustainable transport solutions.

On April 29, 2021, Daimler Truck AG and Volvo Group launched their joint venture, cellcentric, aiming to become a leading manufacturer of hydrogen fuel-cell systems for long-haul trucks. This venture signifies a commitment to sustainable transport, with plans to begin production in 2025. The partnership advocates for a comprehensive EU hydrogen policy to accelerate technology adoption and proposes establishing 300 hydrogen refueling stations by 2025 and 1,000 by 2030 in Europe. The initiative is part of broader efforts to achieve CO2 neutrality by 2050.