Volvo Cars has announced that it will stop funding Polestar Automotive Holding, which it owns with Geely Holding. Report by ILM.

The company is handing over responsibility for Polestar to Geely and may also release its 48% stake to Volvo shareholders, which would make Geely a direct owner of the business.

Polestar has reportedly missed its delivery targets for 2023 and continues to struggle in 2024. The company now plans to cut around 15% of its workforce globally, about 450 jobs.

Volvo shares spiked by more than 30% at market open after the announcement.

Geely responded, saying: “Geely Holding will continue to provide full operational and financial support to the independent exclusive brand going forward.”