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Update: Volvo's stake in Polestar has shrunken down to 18 percent, after 62.7 percent of its shares were divided among the brand's other shareholders. Most of the stake has been handed over to Chinese parent company Geely, which will now be responsible for funding Polestar.
Just in time for Valentine's Day, Volvo and Polestar have announced that their relationship has come to an end. Financially, at least, as Volvo has announced that it has cut funding for the Polestar electric brand––leaving it to Chinese parent company Geely to oversee the company's gradual rollout of new models. What's more, Volvo has insinuated that Geely will become a major shareholder for Polestar in the near future.
Even though Polestar will no longer be getting cash from Volvo, the two companies plan to continue working together in terms of manufacturing and new vehicle development. That means Polestar's expanding lineup of EVs will still share some Swedish influence with Volvo, though we expect the design languages of the two companies to continue separating as time goes on.
The big financial shakeup isn't exactly great news for Polestar itself, as the EV brand is still young and fragile. While there are plenty of models on the way, only one is officially in showrooms right now. And with EV sales on a downturn, it remains to be seen whether Polestar will have enough funds from Geely to sustain its future products––namely the highly-anticipated Polestar 5 sedan and Polestar 6 roadster.
As for what's in store for the rest of this year, Polestar plans to launch its Polestar 3 SUV in the first quarter, after software issues caused delays for its original release date. The funkier Polestar 4 will arrive on U.S. shores a bit later in 2024, though it's already available in Australia, China, and Europe.
Image Credits: Polestar
Report
Feb 14, 2024
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Volvo Ends Funding For Polestar, But The Brands Will Still Work Together
Volvo has officially handed over the reigns to Chinese parent company Geely.
Update: Volvo's stake in Polestar has shrunken down to 18 percent, after 62.7 percent of its shares were divided among the brand's other shareholders. Most of the stake has been handed over to Chinese parent company Geely, which will now be responsible for funding Polestar.
Just in time for Valentine's Day, Volvo and Polestar have announced that their relationship has come to an end. Financially, at least, as Volvo has announced that it has cut funding for the Polestar electric brand––leaving it to Chinese parent company Geely to oversee the company's gradual rollout of new models. What's more, Volvo has insinuated that Geely will become a major shareholder for Polestar in the near future.
Even though Polestar will no longer be getting cash from Volvo, the two companies plan to continue working together in terms of manufacturing and new vehicle development. That means Polestar's expanding lineup of EVs will still share some Swedish influence with Volvo, though we expect the design languages of the two companies to continue separating as time goes on.
The big financial shakeup isn't exactly great news for Polestar itself, as the EV brand is still young and fragile. While there are plenty of models on the way, only one is officially in showrooms right now. And with EV sales on a downturn, it remains to be seen whether Polestar will have enough funds from Geely to sustain its future products––namely the highly-anticipated Polestar 5 sedan and Polestar 6 roadster.
As for what's in store for the rest of this year, Polestar plans to launch its Polestar 3 SUV in the first quarter, after software issues caused delays for its original release date. The funkier Polestar 4 will arrive on U.S. shores a bit later in 2024, though it's already available in Australia, China, and Europe.
Image Credits: Polestar
