Volvo Cars today announces that it is acquiring additional shares in Polestar, the electric performance vehicle brand, which will result in its shareholding increasing to 49.5 per cent. The move reflects Volvo Cars’ strong conviction in Polestar’s positioning and exciting potential in the high growth segment for premium electric vehicles. In recent years, Polestar has made significant progress and has established itself as a pioneer in the global market for high-performance electric vehicles as consumers are increasingly looking to combine e-mobility with their environmental aspirations. At the same time, the technologies behind electric vehicles are rapidly advancing and becoming more economical for consumers. Polestar leverages manufacturing capabilities from Volvo Cars. As recently announced the Polestar 3, which is based on Volvo Car Group’s next generation electric architecture, will be built at Volvo Cars´ plant in Ridgeville, South Carolina. By mid-decade it expects production of future Polestar models in Europe. Volvo Cars established Polestar as a new electric vehicle focused brand and owned 50 per cent of Polestar until a private placement earlier this year diluted Volvo Cars shareholding in the company. Through this transaction Volvo Cars’ share returns to its previous level of close to 50 per cent.
Volvo Cars is acquiring its additional stake from PSD Investment, the private investment company of Eric Li, Chairman of both Volvo Cars and its parent Zhejiang Geely Holding Group. PSD Investment will remain the second largest shareholder in Polestar. Volvo Cars has no plans to increase its stake further or to consolidate Polestar. The acquisition is scheduled to complete shortly, but is subject to certain conditions.