Trump trade war casualty: Volvo's $30B IPO

By U.S. EconomyFOXBusiness

Trade disputes will create economic headwinds: UBS Chairman

UBS Chairman Axel Weber on Federal Reserve, the impact of trade disputes and the state of the global economy.

Swedish carmaker Volvo has no plans for an initial public offering, after the listing was postponed earlier this year due to Trump’s trade policies.

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At the L.A. Auto Show, Volvo CEO Hakan Samuelsson told Reuters there were “no plans or schedule for entering into the equity market.”

The IPO was valued at as much as $30 billion.

Volvo did not immediately return FOX Business’ request for comment.

Volvo is owned by Chinese auto manufacturing company Geely. The carmaker’s listing was initially expected in September but postponed by Geely over concerns about the effects of the Trump administration’s trade policies. At the time the company indicated the listing was still possible in the future.

Trump has floated the idea of imposing a 25 percent tariff on all auto imports and he renewed calls for auto tariffs this week after U.S. automaker General Motors announced plans to cut 15 percent of its workforce and slash domestic production. Earlier this month, FOX Business learned the administration was discussing the prospect of auto tariffs.

Trump is expected meet with Chinese President Xi Jinping at the G20 summit in Buenos Aires this weekend, as trade talks between the two countries have reached an impasse.

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China is the biggest market for Volvo cars, according to the company.

The trade war may also derail the company’s plans to expand its South Carolina plant, Reuters reported, where Volvo is to invest more than $1 billion and create thousands of  U.S. jobs.

Last week, the automaker said production of its S60 luxury sport sedan would be split between China and the U.S., while it was initially scheduled for exclusive U.S. production, according to Reuters.