Polestar ChengduChina – 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.

In July this year, Volvo pledged electric motors for all of its vehicles from 2019, declaring “the historic end of cars that only have an internal combustion engine”.