Categories: News

Faced with difficulties, Polestar is fundamentally reorganizing itself

Polestar experienced a downturn in its performance in 2023 after a strong start. As a result, Volvo’s electric subsidiary needs to restructure its teams and investments…

It is a brand well known in Europe, but not yet visible on French roads: Polestar.

A rapid rise in the European landscape

Independent of Volvo since 2018, Polestar distinguished itself by launching a new model in 2019, the Polestar 1. This plug-in hybrid coupe, with over 600 horsepower, was limited to 1,500 units, making this new premium division highly desirable. However, Polestar quickly shifted towards its main focus: 100% electric. The Polestar 2, a four-door sedan, was introduced in 2020 as a competitor to the Tesla Model 3, offering 231 horsepower and a theoretical range of 481 kilometers on a single charge (WLTP). Following its success in Europe, especially in Scandinavia, Polestar expanded its range by launching the Polestar 3, an electric SUV, in the past year. The Polestar 3 shares its foundation and many components with the Volvo EX90. The brand also has two upcoming models planned: the Polestar 4, a coupe SUV, and the Polestar 5, a large electric sedan with a sleek design.

Difficulties due to falling European demand

Despite the ambitious projects, Polestar faced challenges in recent months. The brand had hoped to sell 60,000 cars in 2023 but only managed to sell 54,600, resulting in a workforce reduction of 15%, with around 450 layoffs. Additionally, despite Volvo’s significant investment in Polestar (with a 48% stake), the brand struggled to sustain its cash flow. As a result, Volvo is planning to sell its Polestar shares to Geely, its parent company. This move aims to create separate legal entities for both Volvo and Polestar, enabling a better balance of power and direct control by Geely. This operation will not affect Geely’s stake in Volvo, which remains at 79%. Polestar isn’t the only brand facing challenges in Europe with electric models, as the demand for this type of car has been decreasing in recent months.

Read also:

Polestar: Volvo’s iconic AMG models

The Polestar 2 challenges the Tesla Model 3

Volvo EX90: the large 100% electric SUV is revealed

Published by

Recent Posts

Toyota’s Strategy to Keep Up with Electric Cars in the UK: A Closer Look

Toyota’s Strategy to Keep Up with Electric Cars in the UK: A Closer Look

While remaining cautious on the all-in-one approach to 100% electric, Toyota intends to progress on…

10 mins ago

Over 50,000 Orders Placed for the Renault 5 E-Tech in the UK!

Unveiled only a few days ago, the new Renault 5 E-Tech has already attracted many…

22 mins ago

Electric cars: Exciting new battery technology shows promise, but faces significant drawback

Amprius Technologies, an American pioneer, announces a major breakthrough in batteries for electric vehicles, offering…

1 hour ago

UK drivers may soon be able to regain lost points on their driving licenses sooner

A bill, which will soon be examined in the National Assembly, submits the idea of…

10 hours ago

80th Anniversary D-Day Motorcycle Ride on Iconic Route

On the occasion of the celebrations of the 40th anniversary of the Landings, a motorcycle…

11 hours ago

This ultra-rare Spanish supercar comes with a price tag of nearly £800,000

This sports car has just been sold in Florida. In the 1950s, its designer created…

12 hours ago

Renault 5 E-Tech: a Closer Look at its Competition in the UK

Presented with great fanfare last week, the Renault 5 E-Tech is undoubtedly the most anticipated…

12 hours ago