Volvo shares fall to record low as parent company sells shares

Shares of Volvo Cars fell 14% Friday morning after its parent company Zhejiang Geely Holding Group initiated a sale of about 100 million shares of the Swedish automaker.

As of 9 a.m. London time, Volvo shares were down 10.31% after paring some losses. Shares fell 14% earlier in the day and hit an all-time low, according to Reuters data.

Volvo shares are down 25% year to date.

Geely announced in a statement on Friday that it would sell more Volvo shares, which was in line with its long-term strategy.

The aim of the move is to increase Volvo’s liquidity and “provide more opportunities to generate long-term sustainable value for institutional and retail investors.”

Geely will still own 78.7% of Volvo shares after the sale, the statement said. Geely previously owned about 82% of Volvo, bringing the shares sold to more than 3%.

The holdings were sold at a deep discount and the sale totaled about $350 million, Reuters reported.

“As a majority shareholder, we remain steadfast in our commitment to continue supporting Volvo Cars in its transformation to become a fully electric car manufacturer, and we look forward to building on this continued global success,” Daniel Donghui Li, CEO of Geely Holding Group said in a statement released Friday.

Geely did not immediately respond to a request for comment from CNBC. A Volvo Cars spokesperson directed CNBC to Geely when asked for comment.

Geely, founded by Chinese business tycoon Li Shufu, who is still its chairman, acquired Volvo Cars in 2010. The company’s portfolio includes a range of global automotive brands such as electric car giants Polestar and Smart, as well as than Volvo.