Volvo To Stop Funding Polestar
By Paul Homewood
One of the most popular electric vehicle brands is set to lose funding from its parent company after falling sales and delivery delays.
In an announcement this morning Volvo Cars announced that it would stop funding Polestar Automotive Holding in the near future.
The Swedish manufacturer said the luxury electric vehicle brand would be handed over to one of its largest shareholders – China’s Geely Holding.
As a result, Geely will continue to provide full operational and financial support to Polestar going forward.
https://www.gbnews.com/lifestyle/cars/major-car-brand-polestar-volvo-electric-vehicle-sales
Volvo currently owns 48% of Polestar. The rest is owned by Geely, who themselves own Volvo!
This move suggests that Volvo simply don’t have the resources to keep pouring money into Polestar.
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NOT A LOT OF PEOPLE KNOW THAT 
I see that BMW are to abandon EVs and concentrate on hydrogen fuel cell propulsion.
Hydrogen fuel cells together with nuclear fusion have been the energy of the future (any minute now) since the 1970s.
Haha, yes.
Hydrogen is still expensive, inefficient, and difficult to handle.
surely this is a non story. If the 48% “owned” by Volvo is moving to the other shareholder who is also the 100% owner of Volvo then the ultimate ownership hasn’t changed and the same support will need to be provided directly. Whether there is also some financial benefit in Volvo being based in Sweden and hence in EEC may also be relevant, but otherwise this is just an accountancy change
No, Volvo is publicly listed though Geely owns a majority (82%).
Yes, this looks more like Geely no longer need or want the Volvo name to be associated with the Polestar brand. Everyone knows that Polestar is a rebranded Geely anyway.
Just seems like left pocket, right pocket!
if only Polestar had a rear-viww mirror they’d have seen this coming..
As I recall Volvo have stated they will have an all electric range soon, maybe they are having second thoughts, eggs and basket come to mind.
Polestar autos start at about $50,000 with most near or above $100,000. Tack on fees, taxes, license, and insurance. Ouch! That’s a no-go with the people I know.
” Polestar autos start at about $50,000 with most near or above $100,000. “
I’ve previously bought “boxy” Volvo saloons for less than a week’s take-home pay. A good “winter car”.
A new Polestar might be outside of my price range.
I believe Volvos are made in China…certainly our first job on receiving a transpofter was to remove the ‘Port of Shanghai’ stickers lest the buyers notice that the ‘right-on’ algernative to Bmw/Merc/JLR came not from the land of Abba…..
tbh I reckon that its the other way round, Volvos will become rebadged Polestars.
One of the most popular electric vehicle brands is set to lose funding from its parent company after falling sales
If it was that popular it wouldn’t be suffering from falling sales…..
In comparison to other electric vehicle brands it may well be popular, all things are relative
Yes, gezza, I also flagged that as a begging the question fallacy.
The shine is coming off EVs. They’re a niche car and those that could benefit from owning one, could afford it, and have a place to charge it overnight have already bought one.
I agree. I think market saturation is their problem.
So maybe 15% of car buyers pick electrics. Meanwhile, government says, by 2035, EVERYBODY will pick EVs. I can’t wait to see how this plays out.
remember slamming a Chinese built Volvo door in China over thirty years ago. Sounded just right. Ominous
“Most popular”…”falling sales”…
How does that work?