Latest news with #AutomotiveNewsEurope
The Advertiser
6 days ago
- Automotive
- The Advertiser
New Ford passenger cars on the way: could Fiesta and Focus return?
Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf-sized Focus, following the Toyota Camry-rivalling Mondeo's 2019 axing. All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan. MORE: Ford Ranger, Everest lead Blue Oval's best result in 16 years MORE: Everything Ford Content originally sourced from: Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf-sized Focus, following the Toyota Camry-rivalling Mondeo's 2019 axing. All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan. MORE: Ford Ranger, Everest lead Blue Oval's best result in 16 years MORE: Everything Ford Content originally sourced from: Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf-sized Focus, following the Toyota Camry-rivalling Mondeo's 2019 axing. All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan. MORE: Ford Ranger, Everest lead Blue Oval's best result in 16 years MORE: Everything Ford Content originally sourced from: Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf-sized Focus, following the Toyota Camry-rivalling Mondeo's 2019 axing. All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan. MORE: Ford Ranger, Everest lead Blue Oval's best result in 16 years MORE: Everything Ford Content originally sourced from:
7NEWS
7 days ago
- Automotive
- 7NEWS
New Ford passenger cars on the way: could Fiesta and Focus return?
Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf -sized Focus, following the Toyota Camry -rivalling Mondeo's 2019 axing. All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan.
Perth Now
7 days ago
- Automotive
- Perth Now
New Ford passenger cars on the way: could Fiesta and Focus return?
Ford is set to re-introduce passenger cars to its European lineup, with the company reportedly telling its dealers it has new one in the works. According to Automotive News Europe, a directive from Ford CEO Jim Farley has been issued to develop passenger cars – distinct from SUVs – at Ford of Europe. Ford of Europe was previously the centre for the brand's key passenger cars, most recently including the Fiesta, Focus and Mondeo that were all offered in Australia. Dealers were reportedly told the news during a conference call with Christoph Herr, chief of Ford's German-speaking markets. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert The automaker didn't make any official comment when asked about the plan by Automotive News Europe. The motive for the decision – which may include an entry-level price-leading product – hasn't been revealed. It also comes despite SUVs continuing to outsell hatchbacks and sedans in Europe, the United Kingdom, the United States and Australia. Ford's showrooms globally, including Australia, are currently dominated by SUVs and pickups, with sliding sales of conventional hatchbacks and sedans leading to their disappearance from showrooms. Supplied Credit: CarExpert The rise in popularity of SUVs saw them overtake passenger car sales in Europe in 2015, with SUVs doing the same in Australia in February 2017 – and remaining ahead ever since. In Australia, 56.9 per cent of all new vehicle sales last year were SUVs, led by the Toyota RAV4, while traditional passenger cars made up 17.1 per cent. Sales figures from JATO reveal SUVs made up a similar 54 per cent of all vehicle sales in Europe in 2024 as hatchbacks and sedans dropped further behind with declines in the Fiesta's B-segment, Focus' C-segment and Mondeo's D-segment. While the Ford Fiesta was the brand's best-selling car in Europe – and a key model in the brand's navigation of the 2008 Global Financial Crisis – the Puma crossover SUV has since taken over the mantle. Supplied Credit: CarExpert The Puma – sold in Australia between 2020 and 2024 – was the UK's number one seller in 2024 ahead of the Kia Sportage and Nissan Qashqai SUVs. In Australia, the Ford Ranger ute has been at the top of the sales charts – knocking off the Toyota HiLux – for the past two years, with its Everest SUV spin-off accounting for around 90 per cent of the brand's total sales. Its third-best seller is the Ford Mustang – a two-door sports coupe and convertible – which has been the only passenger car offering in Australian dealers since 2022. That's when Ford Australia dropped both the Fiesta small hatch/sedan and Volkswagen Golf-sized Focus, following the Toyota Camry-rivalling Mondeo's 2019 axing. Supplied Credit: CarExpert All three suffered dwindling sales as their segments declined, market conditions which also saw the end of once-popular models like the Mazda 6. Globally, production of the European Mondeo ended in 2022, while the last Fiesta was manufactured in 2023 – despite its lengthy stay atop UK sales charts to hold the record as the country's all-time highest-selling nameplate. Ford pulled the plug on its Galaxy and S-Max people movers in 2022 as well. The final Focus – after more than 12 million produced – is scheduled to roll off the production line this November. Supplied Credit: CarExpert The Blue Oval has introduced fresh product in Europe in the Capri and Explorer electric SUVs as it has shifted its focus to more profitable SUVs and electric vehicles, as well as commercial vehicles. However, these Volkswagen-based models haven't proved to be huge sellers, and Ford's European sales have continued to decline. Ford has only a handful of passenger cars left globally. There's the iconic Mustang, while in China there's another generation of Mondeo – exported to the Middle East as the Taurus – plus a higher-riding Mondeo Sport companion. The Mondeo/Taurus and Mondeo Sport come out of Ford's joint venture with Chinese automaker Changan. MORE: Ford Ranger, Everest lead Blue Oval's best result in 16 years MORE: Everything Ford
Yahoo
11-07-2025
- Automotive
- Yahoo
Polestar increases focus on Europe as tariffs stall U.S. sales, China traction remains elusive
Polestar's sales in Europe were up more than 80 percent in the first half of 2025, helped by the arrival of the Polestar 3 and Polestar 4 SUVs. CEO Michael Lohscheller expects to keep the momentum going as Polestar this year launches sales in Europe's fourth-largest market, France, and adds the Polestar 5, a large sporty sedan that is a rival to the Porsche Taycan and BMW i7. The emphasis on Europe comes as high tariffs on the automaker's China-built cars make them too expensive to sell in the U.S., where sales were down nearly a quarter in the first half. In China, meanwhile, Polestar has been struggling because it is seen as a Scandinavian brand. 'So, when I see all the growth in Europe, I clearly focus on Europe,' said Lohscheller, who took over as CEO last October. He discussed this and more with Automotive News Europe Managing Editor Douglas A. Bolduc in a video call on July 10. In May, Polestar paused its 2025 forecast becasue of a potential hit from U.S. tariffs. When will you start providing an outlook again? We have paused giving any financial guidance because of the situation around the world, particularly in the U.S. Currently, I can't say when we will bring this back because the uncertainty continues. Sign up for the Automotive News Europe Interview of the Month newsletter delivering exclusive interviews with top auto executives. When will Polestar be profitable? We said in early January that we target cash flow breakeven in 2027. That remains the time frame. We have made a lot of progress on certain fronts. If you look at our global sales figures, we were up 38 percent [to 18,049], in the second quarter and 51 percent [to 30,319] in the first half. We are adding products and retail locations. Those are indicators that we are doing the right things. However, there are more challenges to work through. We will publish financial results for the second quarter at the end of August. Polestar in June secured a $200 million equity investment from PSD Investment, a company controlled by Geely Holding founder Li Shufu. What is Polestar's current cash runway and how much more funding does the company need to remain solvent through 2026? We will disclose that at the end of August when we publish the financial results. Li Shufu holds 66 percent of Polestar through PSD investment and the Swedish subsidiary of Geely. Why has the company struggled to find outside investors? Our goal is to connect with the right partners in terms of funding and find solutions for that. The $200 million in incremental equity is a very strong and encouraging signal that shows we are working through the challenges. Roughly how much have the U.S. tariffs cost and how much have the European tariffs cost? It is in the single-, double- or triple-digit millions? We will not give you a number for that, but I want to put the U.S. business a little bit into perspective. In the first half, 76 percent of our total sales were in Europe while 8.5 percent were in the U.S. Last year, the U.S. accounted for 17 percent of our first-half global sales. There are two messages here: 1) Europe is growing very strongly, in particular the U.K., where we are up 217 percent in the first six months of the year; 2) Although 8.5 percent coming from the U.S. is still very important (nearly all the volume came from the Polestar 3, which is made at sister brand Volvo's U.S. plant). But it's obvious there is uncertainty with regard to the U.S. business. We are working through that, but that is why I also cannot give you an amount. We are starting production in South Korea as well, which is another important manufacturing footprint for us (and will reduce the 28.8 percent tariff Polestar faces on China-made cars shipped to the EU to 0 percent). In addition, we announced last week that the Polestar 7 will be produced at Volvo's factory in Slovakia. This embedded content is not available in your region. Yes or no: If you could get in a time machine and go back to 2019-20, would you still decide to make all your cars in China? It's a lot easier to answer that in hindsight, but looking forward, I am totally convinced that we are doing the right things: 1) Localization in the different regions is the way to go; 2) Europe is by far our most important and fastest growing market, so we have to produce there; and 3) The Polestar 7 is a premium compact SUV, which is a very big segment. This will give Polestar a broader appeal, meaning more volume. Now we have to execute and work through the different challenges. And some of them, in fairness, are outside of our control. When will Polestar know the true impact of the tariffs on the business? It's probably fair to say once we close this year and can compare it with 2024, we will have some indicators and we can give some more color around how we developed. I want to reiterate that the U.S. business is important, but it's not as important as the European business. I mean, 76 percent versus 8.5 percent is a big gap. That is why going into a big EV market such as France and other European markets is what matters for Polestar right now. That's what we are focused on, and we are doing really well. Polestar is up 78 percent in Europe to 15,868 after five months, according to figures from Dataforce, is that growth pace sustainable for the full year? The numbers you quote are correct. However, whether we continue that pace depends how the market develops, how the competition develops and many other factors. So, while I won't commit to a number, I will say we have strong momentum and we want to maintain it. Is there a metric you can cite to underline how essential it has been to be added to Volvo dealerships in Europe? This is super important and one of the main reasons why we are doing so well. While I don't have any specific metric, I can say that once a customer is interested in a car the second question you get is: Where can I service the car? We now have 1,700 Volvo service points where Polestar customers can go if something happens. That is crucial to both fleet and retail customers. The whole commercial set up together with Volvo is of highest importance. Also, nearly all Polestar retailers are also Volvo retailers. So, it's a win for everyone. What is Polestar doing to offset the 28.8 percent tariff on models made in China and sold in the EU? Does the customer have to pay more? How much? We are always laser focused on improving cost, but we have to accelerate those cost improvements. That's exactly what we are doing. At the same time, I believe that tariffs are not a long-term solution because at the end of the day we want to offer emission-free mobility to consumers, and they want to have a wider choice of vehicles that provide this. Therefore, adding duties is not helpful to anybody The only offset in the U.S. is to not sell China-made cars there, right? Localization is the key. We see that with the Polestar 3 which is made in the U.S. It is a phenomenal car in terms of size, technology and performance for the U.S. (in the first half it accounted for 91 percent of Polestar's U.S. sales, according to the Automotive News Data Center). What were Polestar's six-month sales in China and is the company engaging in the China price war? China is difficult for us because we are being perceived as a Scandinavian brand. In a way that is a compliment, because that is what we are. The Chinese market is hypercompetitive, so we need to balance volume and profitability with limited resources. So, when I see all the growth in Europe, I clearly focus on Europe. Roughly, what percentage of Polestar's sales are coming from China? It's very low. Let's talk about the cadence of Polestar's next launches. Next is the Polestar 5, which is a Porsche Taycan rival, set for later this year, right? Correct. Then comes the Polestar 6 roadster followed by the Polestar 7 in 2028, right? No, the Polestar 7 will come before the Polestar 6. The reason is very simple, I want to go more quickly into the compact SUV segment, where there is a lot of volume and a lot of money. I love the Polestar 6, but I had to reprioritize it in terms of timing. So, the focus will be on higher volume vehicle rather than halo cars, right? We consider the Polestar 5 a halo car. So, I don't need two halo cars at the same time. Therefore, we will focus on the Polestar 5. Will the Polestar 5 only be built in China or will you add production elsewhere? It will be China production only. Will there be a second-generation Polestar 2 or will it get a new number? When would it come to market? There will be a Polestar 2 successor because it's an incredibly successful car with 170,000 units on the road, but I cannot say when it will come. Sign in to access your portfolio
Yahoo
10-07-2025
- Automotive
- Yahoo
Software-defined vehicle innovation stalled by EU overregulation, lawyer says
European overregulation is stifling innovation among automakers in the race to develop software-defined vehicles, while U.S. and Chinese automakers are benefiting from more flexible regulatory environments, a lawyer says. Europe is struggling to unlock its SDV potential because of heavy regulation and fragmented policy approaches, placing the region's long-term competitiveness at risk, said Volker Hartmann, a Berlin-based lawyer at Reuschlaw, which specializes in product liability, compliance and supply chains. 'We still have a strong automotive industry in Europe with a superb engineering tradition,' Hartmann told Automotive News Europe. 'But when it comes to new technologies such as SDVs, we see that some of the EU tech regulation collides with what is going on in reality around the globe. As a result, we can see a rapid deterioration in R&D around SDV innovation in Europe.' Sign up for the Automotive News Europe Focus on Technology weekly newsletter, looking at advancements in all aspects of the vehicle including performance, autonomous driving, batteries and more. SDVs offer significant potential for automakers but face a host of safety regulations and standards, including ISO/SAE 21434 and UNECE WP.29. These requirements increase development time and cost. Adding to the challenge, there are no global industry standards or universally accepted hardware interfaces or data models. That makes system integration across SDVs more difficult. Hartmann said the issue isn't that the EU regulates — but how it regulates. 'The EU has a lawmaking and regulatory tradition based on regulating technology upfront, very comprehensively and in high detail,' he said. 'Before we have a technology in place, we often already have a regulation.' This complex system drains automakers' resources, he said. Larger manufacturers may manage the bureaucratic burden, but it often stifles innovation at startups. 'The EU has created a complex web of rules and a conservative investment environment that makes it difficult for startups to grow and compete globally,' Hartmann said. 'In Europe, it seems like a huge uphill battle to bring a good idea to market, so innovators just go to the U.S. and to China.' Hartmann added: 'If you look at German automakers now compared with 10 years ago, there is not much there. They have lost a lot of money, talent and energy. The regulatory aspect worsens this situation. Our industries are fighting partly self-made problems and, on top of that, have a framework that is not supportive enough.' Stefan Bratzel, director of the Center of Automotive Management, agrees that overregulation is a challenge. 'If you have too much regulation, it will affect business models,' he said. 'California, for example, has a more hands-on approach, and I don't see so much overregulation there.' But not everyone shares that view. Gartner Vice President of Research Pedro Pacheco doesn't see EU regulation as a significant hurdle. 'The proof of that is that Tesla — which was the top carmaker in Gartner's Digital Automaker Index 2024 — was able to roll out a competitive stack in Europe, the U.S. and China,' he said in an emailed reply to questions. For Pacheco, the greater obstacle to SDV success is internal: 'Legacy automakers have to think and act truly 'software first,' and this has been something very challenging for several of these companies.' The European Commission defended its approach in an emailed statement, citing its Automotive Action Plan launched in March. The plan includes steps such as the European Connected and Autonomous Vehicle Alliance and joint investments in developing a computing and software architecture for future autonomous vehicles. Despite those efforts, Hartmann warned that growing geopolitical fragmentation could hinder innovation. 'We are not likely to see a global digital auto happen,' he said. 'SDV architecture platforms cannot happen anymore from a global approach but have to happen in separate regional boxes — China for China, the West for the West, the EU for the EU, or North America for North America.' Pacheco noted that sanctions and trade barriers might slow the SDV rollout but not stop it. 'Several Western automakers have already established software centers in China so that they can tap into the strong SDV knowledge there,' he said. 'However, if the West shuts the door to Chinese cars and Chinese tech, it will be harder for Western customers to buy competitive products from a software perspective.' Still, Hartmann sees an opportunity in Europe's emphasis on data privacy. 'All over the globe, people want to have their data privacy rights respected,' he said. 'This is our chance, because China is clearly not putting this into focus — they have a security, state-centric approach.' He also pointed to the EU's transparency and regulatory predictability as a strength. 'China has a black box regulatory regime. They can decide to do something tomorrow and just do it. There is a higher level of unpredictability in the Chinese system.' Looking ahead, Hartmann encouraged European automakers to diversify supply chains and reduce their dependence on China. 'There might have been an unhealthy focus on China in the last two decades from the European automotive industry,' he said. 'Now there is a chance to correct this. India, for example, has a huge talent pool with low labor costs. Latin America is very underestimated — it has a huge chance in this new world because it shares some of the fundamental cultural principles with the EU and North America.' 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