As Volvo’s Polestar brand gears up to deliver its first mainstream model – the Polestar 2 – Volvo are looking to investors to fund Polestar’s electric ambitions.
Volvo’s Polestar brand is gearing up to reveal its first mainstream electric car – the Polestar 2 – on 27 February which, at a stroke, will push Polestar in to the mainstream, taking aim at the Tesla Model 3 with a Polestar 2 expected to cost from around £35,000 with up to 400bhp and a range of 300 miles.
Until now, Polestar has been funded by Volvo and parent Geely – to the tune of around £500 million – but driving electric car ambitions for Polestar to deliver up to 100,000 sales a year of its flagship Polestar 1, the soon to arrive Polestar 2 and the planned Polestar 3 isn’t cheap.
So Volvo and Geely are looking for investors to fund Polestar’s ongoing development, and are in talks with Chinese and US investors. Volvo CEO, Hakan Samuelsson, said:
We need funding to drive the very expensive development, so let’s see how fast that can happen.
The end game for Polestar is to have a company where we [Volvo] would be a big dominant player, but the rest would be open for various financial investors. Long term, an IPO could also be an option. However, it is not something we are planning right now.
It’s a pragmatic approach to drive Polestar forward, and despite Volvo’s ability to weather the current slowdown in China and elsewhere the costs of electric ambitions are huge. Outside investment and partnerships is the way forward, not just for Volvo and Polestar, but for all car makers.