Volvo Group sells majority stake in WirelessCar to Volkswagen

The Volvo Group has signed an agreement to divest 75.1% of the shares in its wholly-owned subsidiary WirelessCar to the Volkswagen Group for SEK 1.1 billion.

WirelessCar provides connected vehicle services and solutions to global producers of passenger cars. Closing of the transaction is expected during the first half of 2019.

“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,” said Jan Gurander, Deputy CEO of the Volvo Group.

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

The completion of the transaction is subject to customary authority approvals.