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Volvo Cars has no plans currently for IPO - CEO

Volvo Cars has no plans currently for IPO - CEO
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STOCKHOLM/LOS ANGELES (Reuters) – Volvo Cars currently has no plans for a share float, its chief executive said on Wednesday, more than two months after the Swedish carmaker postponed its plans for an IPO blaming trade tensions and a downturn in automotive stocks.

“There are no plans or time schedule for entering into the equity market,” Chief Executive Hakan Samuelsson told Reuters on the sidelines of the Los Angeles Auto Show, adding that it was also “not the right timing” to consider raising funds via bonds.

Carmakers are in need for large funds to back their costly ambitions of building electric and driveless cars, but Samuelsson said that Volvo would finance its development using existing cash flows.

(Reporting by Esha Vaish in Stockholm and Alexandria Sage in Los Angeles, editing by Johannes Hellstrom)

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