Volvo Cars and its owner Geely Holding has jointly pledged US$750m to support Polestar’s initial product, brand and industrial development. This follows the unveiling of the performance brand’s first model, the Polestar 1, in Shanghai, China, on October 17.
As the subsidiary continues to establish itself as a standalone electrified performance car company, the deal highlights the financial and manufacturing capabilities the company will have access to.
The funds will be used to establish a state-of-the-art manufacturing facility in Chengdu, China. This will shorten the time Polestar needs to commercially launch its cars, as well as provide benefits from synergies in the development of next-gen technology.
Polestar’s first production car, the Polestar 1, is a 608ps two-door, four-seater hybrid coupé. It has a pure electric range of 150km and will go in to production in mid-2019. The Polestar 1 will be followed later that year by the first fully-electric car launched by Volvo Group, the Polestar 2.
At the event in Shanghai, the Volvo Group pledged to release four more fully-electric vehicles – bearing either the Volvo or Polestar name – between 2019 and 2021, corresponding with the current electrification trend.
With China as a driving force behind the electrification of the global car industry, Polestar will spearhead the development of new technologies and allow Volvo Cars to enhance its electrification and connectivity strategies.