This is a brand well known to Europeans, but we French have yet to see on our roads: Polestar.

Rapid growth of the European landscape

Independent of Volvo since 2018 (previously the name covered the sportiest models in the range, such as the Cupra for SEAT), it marked its autonomy in is selling the new 2019 Polestar 1 model. This is a hybrid coupe that develops over 600 horsepower and was produced in just 1,500 units. Enough to make this new premium unit more desirable than ever. But quickly Polestar set itself the main task: 100% electric ! The one who embodied this new beginning was Polestar 2, a four-door sedan that competes with the Tesla Model 3, which will arrive in 2020 and is significantly more affordable than the Polestar 1. Developing 231 horsepower, it is capable of achieving a theoretical range (WLTP) of 481 kilometers on a single charge. Its success in Europe, and especially in the Scandinavian countries, prompted Polestar to expand its range. This very strategy was launched last year Polestar 3, an SUV is also electric which shares a common base and a large number of components with the Volvo EX90. Two models are planned for the coming years: Polestar 4, SUV-coupeand the Polestar 5, a large electric sedan with a streamlined appearance.

Difficulties due to falling European demand

Great projects in perspective, but which also hide certain difficulties that the brand has faced in recent months. Polestar expected to sell 60,000 cars in 2023, but only sold 54,600, according to Automotive News. As a result of this missed target, the brand will cut 15% of its workforce, dismissal of about 450 people. But that’s not all. Although Volvo is owned by the Chinese car group Geely, Polestar is not under its direct control, as it is itself a division of Volvo Cars. All this should change very soon! With a 48% stake in Polestar, Volvo’s investment in its brand is significantand Volvo is going to get rid of Polestar precisely to maintain cash flow. In this way, Volvo Cars will sell its shares in Polestar to its parent company Geely. This will now make it possible to have two separate legal entities (Volvo and Polestar) and better rebalance the forces between the two brands, which will now be equal, under the direct control of Geely. The transaction will not affect Geely’s stake in Volvo, which remains at 79%.

Polestar is not the only one that has faced difficulties in Europe with its electric models: despite sales growth of 12% in 2023, in recent months, the demand for this type of car has been falling…

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The Polestar 2 challenges the Tesla Model 3

Volvo EX90: a large 100% electric SUV is introduced