Volvo Cars: No Money to Northvolt

The car manufacturer Volvo Cars does not intend to participate in the financing that could save the crisis-stricken battery manufacturer Northvolt from bankruptcy, reports the news agency Bloomberg. Absolutely not, says Volvo Cars' CEO Jim Rowan.

» Published:

Volvo Cars: No Money to Northvolt
Photo: Björn Larsson Rosvall/TT

Share this article

Volvo Cars has been developing its own battery production in a company called Novo Energy in Gothenburg, where Northvolt is a 50-percent owner. However, Volvo Cars has not previously participated in the financing of Northvolt and will not do so now, according to Volvo Cars' CEO Jim Rowan.

We would not inject capital into Northvolt. The answer to that question is an absolute no, says Rowan to Bloomberg.

Negotiating a rescue package

What will happen to Novo Energy if Northvolt pulls out of this collaboration, Rowan does not want to speculate about.

We'll cross that bridge when we get to it, he says.

According to Bloomberg's sources, Northvolt is in intense negotiations to secure a rescue package worth around 300 million dollars (approximately 3.2 billion kronor) with support from owners, lenders, and customers. However, it is unclear whether it will come to fruition.

TT has unsuccessfully sought representatives from Northvolt for a status update.

The newspaper Dagens Industri reports that Northvolt has secured a smaller and short-term support, estimated to be around 300-400 million kronor, among other things, to cover this week's salary payments.

Security in Montreal factory

The American major owner Goldman Sachs is, according to sources, participating in the talks about Northvolt's rescue package and is willing to provide a so-called bridge loan, but has requested securities in the form of shares in Northvolt's factory project outside Montreal.

Swedish owners, including financier Harald Mix, AMF, and AP funds, are also participating in the talks, according to media reports.

Northvolt concluded negotiations with trade union counterparts on Tuesday regarding a major notice of termination that the company issued at the end of September. The result is that over 1,200 employees will lose their jobs, most of them in Skellefteå.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Norway Central Bank Reduces Interest Rate to 4.0 Percent

Norway Central Bank Reduces Interest Rate to 4.0 Percent

Stockholm Stock Exchange Rises as US Cuts Interest Rates

Stockholm Stock Exchange Rises as US Cuts Interest Rates

Billerud to Cut Up to 650 Jobs Amid Cost-Saving Measures

Billerud to Cut Up to 650 Jobs Amid Cost-Saving Measures

Reduced Benefits Linked to Poorer School Results and Increased Crime

Reduced Benefits Linked to Poorer School Results and Increased Crime

Swedish Companies Face Record 12-Quarter Economic Slump

Swedish Companies Face Record 12-Quarter Economic Slump

Asian Stocks Rise Following US Fed Interest Rate Cut

Asian Stocks Rise Following US Fed Interest Rate Cut

Blackstone to Invest £90 Billion in UK Projects Over Next Decade

Blackstone to Invest £90 Billion in UK Projects Over Next Decade

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Wall Street Mixed as Fed Cuts Interest Rate but Signals Caution

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

Fed Lowers Interest Rate by 0.25 Points, Signals More Cuts This Year

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Stockholm Stock Exchange Sees Modest Gain Led by H&M

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy