Polestar is going independent of its parent company, Volvo Cars, which has announced it will stop investing in the EV maker. However, the two companies will still have much in common as they will continue to collaborate on auto development, as stated by Volvo in its 2023 financial report.
Volvo Cars has decided to invest its resources in its vehicle development as it takes a step back in the Polestar brand’s operation. Its stake in Polestar will be transferred to Volvo’s Chinese owner, Zhejiang Geely Holding. The Chinese entity will automatically become a significant owner in Polestar after receiving a portion of Volvo’s 48% share.
Volvo announced a record 43% jump in profits for the 2023 financial year. It sold more than 113,000 EVs globally, 70% more than in 2022, representing 16% of its global output. Volvo expects even more growth in 2024.
Polestar, however, has its work cut out to stay healthy. It recently announced it was letting go 15% of its staff globally to cut operating costs after having a less-than-stellar performance in 2023. However, the EV will soon release two new EVs; the Polestar 3 Performance and the Polestar 4.
Geely says it will fill the void left by Volvo as Polestar will get its full operational and financial support.