Volvo sells 75% of its stake in WirelessCar to VW

The Volvo Group today signed an agreement to divest 75.1% of the shares in its wholly-owned subsidiary WirelessCar, a connected vehicle service and solutions provider to the Volkswagen Group. The sales price amounts to SEK 1.1 billion (Rs 855 crore). Closing of the transaction is expected during the first half of 2019.

Jan Gurander, deputy CEO of the Volvo Group, said, “We are committed to remaining the leader within the field of connectivity and connected services. This agreement will enable us to fully focus our resources and efforts on connected solutions for commercial vehicles.”.

WirelessCar is said to have over 3 million active connected cars across the globe and revenues for 2018 are expected to reach approximately SEK 0.5 billion (Rs 388 crore). WirelessCar is based in Gothenburg, Sweden, with offices in USA and China.