Latest news with #Polestar5
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
Motor Trend
04-07-2025
- Automotive
- Motor Trend
Polestar Says New 7 Is Coming in 2028, Following the 5 and 6
Polestar's all-electric family of cars and SUVs continues to expand beyond the Polestar 2, with the new Polestar 3 midsize SUV and slightly smaller, more coupe-like Polestar 4 recently joining the fold. Soon, the Polestar 5 "four-door GT" will arrive, and now comes news from Polestar that it has yet another model on the way, though it's a little farther out: The new Polestar 7, due by 2028. Polestar plans to release the Polestar 7, a compact electric SUV, by 2028, featuring shared components with Volvo's EVs. It will be more upright and SUV-like than the Polestar 4, likely resembling a smaller Polestar 3. Production will be in Slovakia to avoid tariffs. This summary was generated by AI using content from this MotorTrend article Read Next Don't read too much into Polestar's numerical naming scheme—it doesn't ladder up in the way other brands such as Audi go about it. In other words, the Polestar 7 isn't bigger or more luxurious than, say, the 5. It's pretty much just the order in which each model debuts, hence why the oldest (the Polestar 2) has the smallest number, and the newest (the Polestar 4) has the highest. The upcoming 5 is the next in line, with the 6 roadster presumably following that and beating this new 7 to market between now and 2028. Polestar's first standalone model was the Polestar 1, a high-priced, small volume plug-in hybrid performance coupe that was not replaced. So, what exactly is the Polestar 7? The automaker says it's a new compact electric SUV that will share components with Volvo's EVs. Per Polestar's announcement, the "Polestar 7 will utilize a technology base from Volvo Cars, benefiting from group component sharing, cell-to-body technology with next-generation battery density and performance, as well as the next generation of in-house developed e-motors. Adaptations will be made to create the driving experience and performance characteristics that Polestar is known for." Our best guess? That means it'll be Polestar's version of the upcoming Volvo EX60, its all-electric equivalent to the XC60 compact SUV. (Volvo's larger XC90 gained an electric analogue recently, the EX90; both are pictured below.) This suggests it'll be a two-row, all-electric SUV that's smaller than the midsize Polestar 3 (pictured above), and more affordable. Confusingly, the Polestar 4 also is a compact SUV—but one with a low, swoopy roofline and a streamlined, four-door coupe style shape. Luckily Polestar has handed out the moody photo at the top of this page depicting the 7 underneath a teasing sheet. Even viewed from dead-on, it seems pretty clear that the 7 is more upright, boxier, and SUV-like than the Polestar 4. We're guessing something like a shrunken Polestar 3 with unique lighting. We'll find out more in the coming years as the Polestar 7's on-sale date draws closer. For now, we know that the 7 will be built in Europe, specifically in Kosice, Slovakia. This should help ensure the 7 avoids the kind of tariffs that upended the recent launch of Volvo's EX30, which is being built in China but will see more capacity spring up in Belgium this year to help extricate that SUV from more severe import duties.
Time of India
13-05-2025
- Automotive
- Time of India
Polestar leans on 'home market' Europe to revive business; posts smaller Q1 loss
Polestar will focus more on profitable Europe rather than the U.S and China, the company's CEO said on Monday, as the Swedish EV maker seeks to pull itself out of chronic losses and mounting debt. Grappling with a cash crunch amid a broad slowdown in EV demand Polestar has made major strategic changes over the past few months after auto industry veteran Michael Lohscheller took over as a CEO. Focusing on Europe, which accounts for 75per cent of sales, aggressive cost cuts and shifting to a traditional dealership have been some of the changes. "Europe has absolutely the highest priority ... we focus a lot on our strengths and the strengths are really in Europe for sure - we have a good service network, a lot of dealers together with Volvo, our brand has a very good awareness," Lohscheller said on a call to analysts. Its Polestar 4 model, priced at 57,900 euros in Germany, stood for nearly half of its sales in the first quarter, with its Polestar 3 that starts at 74,590 euros making up 20per cent of the around 12,304 vehicles sold in the quarter. The increasing sales of the two models helped its net loss narrow to $190 million in the quarter, from $276 million a year earlier, while also aiding its gross margin in turning positive to 6.8per cent in the period from a negative margin of 7.7per cent last year. Polestar's US-listed shares rose as much as 5.5per cent before paring gains to trade down marginally. Other markets Polestar has tried to conquer both the U.S and China, with mixed results, and tariffs adding an extra burden. While the automaker has sold the Polestar 3 - which is produced in America - to the market, the popular Polestar 4 has continued to be delayed to its customers and will not be shipped to the country until production starts in South Korea in the second half of this year. Another upcoming model, Polestar 5, is also produced in China at a Geely-owned factory and is expected to start sales later this year. This comes despite U.S slashing on Monday the tariffs on Chinese imports to 30per cent from 145%. Polestar has also struggled to tap the very profitable market of China - where domestic rivals reign the market with cheaper models and superior tech - and ended in the quarter its partnership with Geely's Meizu.
BBC News
16-04-2025
- Automotive
- BBC News
Warwickshire electric car manufacturer to make redundancies
Electric car manufacturer Polestar is to make redundancies within its research and development (R&D) firm, which has an R&D centre at MIRA Technology Park in Nuneaton, Warwickshire, and another centre at Ansty Business Park in Coventry, said the redundancies were a result of engineering work for Polestar 5 now reaching completion."Regrettably, some engineering roles will no longer be required, which will see a reduction of a number of research and development employees," Polestar a statement, the firm added it would initially make reductions through voluntary redundancy. "Polestar remains committed to maintaining R&D operations in both the UK and Sweden," a spokesperson Swedish firm, owned by Volvo and Geely, sells in 27 markets around the latest model, the Polestar 5, is set to be released this year and was partly designed at MIRA. Follow BBC Coventry & Warwickshire on BBC Sounds, Facebook, X and Instagram.
