Volvo Cars cuts off Polestar
Cette publication existe aussi en Français
Swedish car maker Volvo is to stop funding its electric car startup Polestar.
Volvo Cars, owned by Chinese car maker Geely, will move the funding for Polestar to Geely Sweden Holdings, citing changing priorities.
This comes as Polestar ships Europe’s first vehicle without a rear window, instead using a camera and display to provide the rear view. Volvo has also developed two of its own EVs with an EV market share of 16% and three more will ship in 2024.
Volvo saw its most profitable year in 2023 with revenue of SEK400bn (€35bn) and profits of SEK25.6bn (€2.6bn), but this excludes joint ventures such as Polestar.
Volvo sold 113,419 fully electric cars in 2023, an increase of 70 per cent versus 2022 and representing 16 per cent of its total global sales volume, which was one of the highest among all legacy premium carmakers.
Its electric sales share is still based on only two fully electric models and does not yet reflect the full potential of the new EX30 small SUV, EX90 large SUV or EM90 MPV, all of which will hit the roads in earnest during 2024. The first software-defined vehicle, the EX90, represents a significant shift for Volvo Cars.
For the next two years, Volvo Cars will make the necessary structural and strategic investments that lay the technical foundation for its future success: electrification, software, core computing architectures, advanced connectivity, data capture and analytics, mega casting, next generation e-motor and battery technology, smart cabin technology, and a new advanced manufacturing facility.
This will mean a temporary rise in investment levels at Volvo Cars and so shifting the funding for Polestar.
“Polestar is entering an exciting phase with a strengthened business plan and positioned for future growth. Volvo Cars’ focus is on developing and concentrating its resources on its own ambitious journey,” said Volvo Cars at its annual results last week.
“Volvo Cars is evaluating a potential adjustment to its shareholding in Polestar which may result in Geely Sweden Holdings becoming a significant new shareholder. Geely will continue to provide full operational and financial support to Polestar going forward. As a result Volvo Cars will no longer provide further funding to Polestar. Volvo Cars’ and Polestar’s strong operational collaboration across R&D, manufacturing, after sales and commercial continues to the benefit of both companies.”
“2023 was a key milestone in our transformation journey,” said Jim Rowan, chief executive of Volvo. “We delivered a record-breaking year on many levels, reporting the highest retail sales, revenues and profits in our company’s 97-year history. We also took several significant steps forward in our ongoing transformation, while navigating a complex external environment.”
While there is still a gap in gross margins on the EVs compared to some of its combustion engine (ICE) cars, this gap is closing says the company. The EX30 is set to deliver gross margins of 15-20 per cent and Volvo Cars also expects the upcoming EX90 and EM90 to contribute to closing the gap between EV and ICE margins.
- Volvo Cars takes full ownership of its driverless software venture
- Volvo opens software testing centre in Sweden
Polestar announced a strengthened business plan in November 2023 to manage costs, drive higher margins and cashflow. Polestar reduced its expected external funding need to approximately $1.3bn until cash flow break-even in 2025 and says it is well advanced on securing the additional external funding required.
“With our growing line-up of exclusive, performance cars, Polestar is in one of the most promising phases of its development. We have successfully ramped up production and started sales in China, Europe and Australia of Polestar 4 and Polestar 3 is expected to start first customer deliveries this summer,” said Thomas Ingenlath, Polestar CEO. “We look forward to continued cooperation with Volvo Cars as well as benefiting from even greater synergies with Geely on future orientated technologies.”
Eliminating the rear window in the Polestar 4 means the standard full-length glass roof stretches beyond the rear occupants’ heads. The rear-view mirror is replaced by a high-definition screen that shows a real-time feed from a roof-mounted rear camera – enabling a far wider field of view than what can be experienced in most modern cars. The digital feed can be deactivated to allow drivers to instead see rear occupants if needed.
“With Polestar Precept we previewed a stunning new occupant experience by removing the rear window and pushing the rear header, which plays an integral safety role, further back. This means that now, rear occupants can have a unique experience in our SUV coupé,” said Maximilian Missoni, Head of Design at Polestar.
The vehicle is based on the premium Sustainable Experience Architecture (SEA) developed by Geely Holding and is built in Geely’s SEA factory in Hangzhou Bay, China.
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
