Economy, Auto
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Volvo to Create EV Spinoff Brand

Volvo Cars acquired 100% of Polestar Performance in July 2015Volvo Cars acquired 100% of Polestar Performance in July 2015

Volvo will challenge Tesla Motors and BMW’s i sub-brand by turning its Polestar unit into a global stand-alone brand for high-performance electrified models.

“With Polestar, we are able to offer electrified cars to the world’s most demanding, progressive drivers in all market segments,” Volvo CEO Hakan Samuelsson said in a statement on Wednesday to Automotive News Europe.

“Polestar will be a credible competitor in the emerging global market for high-performance electrified cars.”

The Swedish automaker has picked design chief Thomas Ingenlath to be CEO at Polestar, which previously functioned as Volvo’s answer to BMW M and Mercedes-AMG in the niche for powerful, highly tuned vehicles.

 “Thomas heading up the Polestar organization shows our commitment to establishing a truly differentiated stand-alone brand within the Volvo Car Group,” Samuelsson said.

Ingenlath said, “I am really excited to take up the challenge of establishing this exciting brand, developing a fabulous portfolio of bespoke products, and channeling the passion we have throughout the Polestar team.

The next chapter in Polestar’s history is just beginning.”

 Economies of Scale

Polestar will benefit from technological and engineering synergies as well as economies of scale from being part of Volvo Cars. However, its models will no longer include the Volvo logo.

Polestar will reveal its product and commercial plans in autumn, the statement by the firm said.

Volvo Cars acquired 100% of Polestar Performance in July 2015. Prior to the purchase, Polestar was an independent firm that Volvo hired to jointly develop high-performance versions of its vehicles. The companies also have been working together in motorsports since 1996.

 

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