Volvo Cars, and its owner, Geely Holding, today announce they will jointly invest EUR 640 million to support the initial phase of Polestar’s product, brand and industrial development. The investment will enable Polestar to become a stand-alone electrified performance car company and its first production model was revealed in Shanghai today.
The investment will be used, among other things, to establish a Polestar manufacturing facility in Chengdu, China. It also allows Volvo Cars and Polestar will also benefit from synergies in the development of next-generation technologies such as shared procurement costs, joint development and economies of scale.
With China as a driving force behind the electrification of the global car industry, Polestar will spearhead the development of new technologies within electrification and connectivity.
Polestar’s first production car, the Polestar 1, is a 600hp two-door, four-seater hybrid coupé. It has a pure electric range of 150km – the longest full-electric range of any hybrid car on the market.
The electrified performance car will go in production in Chengdu in mid-2019, and will be closely followed later in 2019 by a smaller vehicle named Polestar 2.
The Polestar 2 will be the first fully electric car launched by Volvo Car Group, and the first of a total of five fully electric Polestar- or Volvo-branded vehicles to be launched between 2019 and 2021.
The Polestar models announced today are thus clear proof points of Volvo Cars’ electrification strategy that was revealed in July of this year.