END OF VOLVO’S FINANCING OF POLESTAR
By Anne Bourgoin
As of last week, the Swedish company Volvo has stopped investing in Polestar, the brand specializing in high-end EVs. In a terse press release, Volvo Cars announced that it wanted to focus “on its own development and centralize its resources on its own ambitious project.”
The Chinese Geely Group, which owns 80% of Volvo, will pursue the financing. “Geely Holding will continue to provide all operational and financial support to the exclusive and independent Polestar brand in the future,” the company said. For its part, Volvo will be relieved of a definite financial burden and will be able to improve profitability, as well as increase investment in its vehicle range.
Coinciding with this announcement, the Swedish company published a report indicating a 17% decline in net income in 2023, attributable to R&D expenditure and exchange rate effects.