Volvo searching for Polestar investors
Volvo is currently holding talks with Chinese and US investors to generate additional capital for its Polestar electric car brand. Meanwhile, the subsidiary has announced that the Polestar 2, the brand’s first all-electric model, will be officially presented on February 27.
Volvo CEO Hakan Samuelsson said in an interview: “We need funding to drive the very expensive development so let’s see how fast that can happen.” An IPO could also be an option, but is not currently planned. To date, Volvo has financed the development of electric and autonomous vehicles out of its own pocket, but in the long run it will prove near impossible to keep up with the market. Samuelsson also stressed that external funds play a major role in financing new electric vehicles.
Volvo and its Chinese parent company Geely each hold 50 percent of Polestar. Together, they made an initial investment of 650 million euros to initiate the construction of luxury electric cars. The brand’s medium-term goal is to produce 50,000 to 100,000 cars a year – including the Polestar 1 hybrid model, the Polestar 2 and a future SUV (both fully electric).
While series production of the Polestar 1 is scheduled to start in Chengdu, China, in the middle of this year, the Polestar 2 is now scheduled for launch on 27 February. Interested parties can follow it via livestream. The model is a fully electric sedan which, according to industry observers, has the potential to compete with the Tesla Model 3.
About a month ago, Polestar published its first teaser photo and key technical data on the planned electric vehicle. The model, which is based on Volvo’s new CMA platform, will have an output of around 294 kW and a range of around 483 kilometres. The price – as yet unconfirmed – is expected to stand around 40,000 euros.
As is well known, the company wants to break completely new ground in sales: Polestar completely abandons the concept of traditional vehicle ownership. All cars are offered on a two or three-year subscription basis. The fixed monthly rate includes pick-up and drop-off services as well as the possibility of renting alternative Volvo and Polestar vehicles if required.
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