Latest news with #Polestar3
Yahoo
a day ago
- Automotive
- Yahoo
Volvo's little-used U.S. assembly plant is $1.4 billion migraine
The sprawling U.S. assembly plant that Volvo Cars powered up in the summer of 2018 signaled a bold ambition to expand into the world's second-largest auto market. But seven years later, Volvo has failed to capitalize on the $1.4 billion investment. Sign up for Automotive News' daily podcast series featuring interviews with industry leaders, insiders and our journalists. The 2.3 million-square-foot factory in Ridgeville, S.C., about an hour northwest of Charleston, was designed to turn out 150,000 vehicles annually. According to Automotive News Research & Data Center estimates, Volvo built 20,000 vehicles there last year — 13 percent of its capacity. Production of the S60 sedan ended a year ago, leaving just two electric crossovers: the Volvo EX90 and Polestar 3. 'Auto assembly plants require a utilization rate of at least 50 percent to break even,' analyst Jeff Schuster said. Volvo's industrial predicament can be traced to poor product decisions and a mistimed bet on electric vehicles. The factory was challenged from the start as Volvo struggled to find skilled production talent in a largely rural area of South Carolina. There also has been churn in plant leadership. Given the factory's sustained losses, coupled with a more recent slump in Volvo's global sales and financial performance, some question whether the Swedish automaker has the financial firepower to persist with its U.S. manufacturing effort. 'Volvo can minimize the damage by cutting shifts and slowing the lines, but it doesn't reduce the fixed costs,' Schuster said. If Volvo is having second thoughts about U.S. production, it's not showing them. Volvo is 'fully committed' to the South Carolina plant, a spokeswoman said in a statement. She described the industrial operation as a 'key strategic advantage' in Volvo's plan to 'build where we sell.' To boost factory utilization, Volvo is considering building a higher-volume model, potentially the midsize XC60 hybrid crossover, in the U.S. 'We want to bring in something rather fast, and something selling in good numbers, so something midsize core is a good guess,' Volvo Cars CEO Hakan Samuelsson said in mid-May. However, that would require pouring several hundred million dollars more into the factory. 'The question Volvo has to ask internally is: If we do this, is it the right plan that gets the plant to where it needs to be in volume?' Schuster said. 'Or, do we cut our losses now?' It's a valid question as a global sales slide taxes Volvo's balance sheet. The automaker, which is majority-owned by China's Geely Holding, reported a 60 percent plunge in first-quarter operating income. Volvo has lost more than two-thirds of its value since its 2021 initial public offering and has become a target for short sellers. In May, the company announced a corporate restructuring to cut expenses by 1.5 billion Swedish crowns ($140 million). The automaker will jettison about 15 percent of its salaried workforce. President Donald Trump's 25 percent tariff on imports creates an existential crisis for Volvo, which ships in 90 percent of the vehicles it sells in the U.S. Yet, it also gives Volvo a reason to keep the lights on in South Carolina. Samuelsson sees Trump's tariffs as an opportunity to revive production in the U.S. Globalization is being 'dismantled,' Samuelsson said April 3 during the automaker's annual general meeting. 'To get around these high 25 percent import tariffs, we need to look at localizing more, increasing the volumes in the factory, and getting the volumes up to get the cost down,' Samuelsson said. Analyst Sam Fiorani suggested that it would be prudent for Volvo to make the additional investment and build the 'right products' in South Carolina, rather than walking away from its U.S. manufacturing investment so early. 'With the current tariff climate, Volvo could find it challenging to continue in the U.S. profitably without domestic production,' said Fiorani, vice president at AutoForecast Solutions. Production in South Carolina began with the third-generation S60 in a market that was shifting away from sedans. Automotive News estimated that the factory made nearly 40,000 sedans at the peak in 2019. The S60 'was the wrong vehicle for the market,' Schuster said. 'Not that there isn't a market for sedans, but you're not going to get the volume required to get up to capacity.' Volvo had planned to build the XC90 large crossover — a vehicle more in tune with the U.S. — in Charleston in 2021. But that plan got derailed when Volvo pivoted toward an all-electric strategy to capitalize on post-pandemic demand and government backing of zero-emission vehicles. Last year, Volvo began building the battery-powered EX90 at the U.S. plant, followed by the Polestar 3. That bet also proved to be wrong once early demand for EVs fizzled. Volvo eventually backed off its EV-or-bust strategy to instead lean on its more practical plug-in hybrid models. 'Volvo established the plant with a plan to grow as the market and the brand transitioned to electric vehicles,' Fiorani said. 'But the EV market has not developed to the level the automaker planned for.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Perth Now
3 days ago
- Automotive
- Perth Now
Is Tesla's sales slump in Australia over?
Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. 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 It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. Supplied Credit: CarExpert The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024.
7NEWS
3 days ago
- Automotive
- 7NEWS
Is Tesla's sales slump in Australia over?
Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024.
West Australian
3 days ago
- Automotive
- West Australian
Is Tesla's sales slump in Australia over?
Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now . It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council . Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024.
The Advertiser
3 days ago
- Automotive
- The Advertiser
Is Tesla's sales slump in Australia over?
Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024. Content originally sourced from: Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024. Content originally sourced from: Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024. Content originally sourced from: Tesla Australia has posted its strongest month of deliveries so far this year, and its first month without a year-on-year decline. According to figures shared by Tesla to the Electric Vehicle Council, the US electric vehicle (EV) brand delivered 3897 vehicles in May 2025, up 9.25 per cent on May 2024. However, following successive year-on-year declines, Tesla sales are still down a significant 48.1 per cent year-to-date. The arrival of the updated 'Juniper' Model Y led to sales of Tesla's mid-size SUV soaring by 122.5 per cent last month compared to May 2024, with a total of 3580 examples delivered. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. It was the brand's biggest month of deliveries since June 2024, when 4683 Teslas found new homes, and its mid-size SUV's strongest performance since March 2024 when it notched up 4379 deliveries. But sales of the Model 3 sedan, despite receiving a similarly extensive update last year, have slumped 83.8 per cent year-on-year to 317 units. Year-to-date, the Model Y is still down 27.4 per cent and sitting at 6974 deliveries, while the Model 3 is down by a whopping 70.7 per cent and sitting at 2583 deliveries. The EV Council is the exclusive source of Tesla and Polestar sales data in Australia after the auto brands quit the Federal Chamber of Automotive Industries (FCAI) last year. The FCAI is responsible for the monthly VFACTS sales report, with May's results set to be published tomorrow. We'll be able to see, then, how close rival brands like BYD have gotten to Tesla. Some rival brands like Deepal and Xpeng, however, don't yet report to VFACTS or the EV Council. Despite its recent sales slump, the Model Y will likely maintain its stranglehold on the title of Australia's top-selling EV – an impressive feat given its ever-growing contingent of rivals – while the Model 3 could hold onto second spot. Here's a breakdown of Tesla's inconsistent monthly sales volumes this year. Another electric car brand Polestar, which also reports to the EV Council, posted a 66.4 per cent year-on-year increase in May. The launch of the Polestar 3 large SUV (28 deliveries) and Polestar 4 mid-size SUV (133) have helped offset the slumping Polestar 2 fastback (82, down 43.8 per cent). Overall, the brand is up 40.6 per cent so far this year, compared to January-May 2024. Content originally sourced from:
