China – The Swedish company and its Chinese owner, Geely Holding, announced that together they will invest 5 billion yuan ($754.5m) to support Polestar’s product, brand and industrial development, which will include the establishment of a manufacturing facility in Chengdu. The Polestar 1 hybrid coupe will be made there from mid-2019, followed later that year by a full electric vehicle (EV) called Polestar 2.
According to the statement from the two companies, Polestar will “benefit from having privileged access to Volvo’s global and well-established manufacturing standards and expertise as it establishes its own manufacturing operations in Chengdu”. Synergies between Volvo and Polestar are expected for next-generation technologies, in terms of shared procurement costs, joint development and economies of scale. The new set up is intended to give Polestar a competitive advantage by shortening the time needed for vehicle launches.
Around 50% of the technology in Polestar 1 will be based on Volvo’s Scalable Product Architecture, with the remainder developed by Polestar engineers working with Volvo’s R&D department. The smaller Polestar 2 will be the first full EV from Volvo Cars and the start of an all-electric, five-model range to be launched between 2019 and 2021 with Polestar or Volvo nameplates.