Volvo shares fell to a record low as the parent company sold its shares

Shares of Volvo Cars fell as much as 14% on Friday morning after parent company Zhejiang Geely Holding Group began selling about 100 million shares of the Swedish automaker.

At 9 a.m. London time, Volvo shares fell by 10.31% after trimming some losses. Shares fell as much as 14% earlier in the day and hit a record low, according to Reuters data.

Volvo shares are down 25% year to date.

jelly He said In a statement issued earlier on Friday it said it would release more Volvo shares, which is in line with its long-term strategy.

The move aims to increase Volvo’s liquidity and “offer more opportunities to generate long-term sustainable value for institutional and retail investors,” it said.

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

Reuters reported that the property was sold at a significant discount and the total sale amounted to about $350 million.

“As the majority shareholder, we remain steadfast in our commitment to continue our support of Volvo Cars in its transformation towards becoming a fully electric car maker, and we look forward to continuing this ongoing global success story,” said Daniel Donghui Li, CEO of Volvo. Geely Holding Group said in a statement issued on Friday.

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

Geely, founded by Chinese tycoon Li Shufu and who remains its chairman, acquired Volvo Cars in 2010. The company’s portfolio includes a group of global car brands such as electric car giants Polestar and Smart, in addition to Volvo.