Volvo's Surprising Shift in Polestar Strategy: A New Chapter for the Electric Brand In a move that signals a significant shift in its electric vehicle strategy, Volvo has announced plans to nearly double its stake in Polestar, a luxury electric car brand it co-founded in 2017. The Swedish automaker's increased investment will give it a nearly 20% stake in Polestar, marking a major milestone in their partnership. This deal also marks a major change in Polestar's production strategy, with the brand's flagship model, the Polestar 3, set to be produced exclusively in South Carolina, USA, rather than China. The move is expected to boost Polestar's presence in the US market and marks a significant departure from the brand's previous focus on the Asian market.
Volvo will double its stake in Polestar to nearly 20 percent. The deal focuses Polestar 3 production in South Carolina and ends output in China.