Polestar is also a victim of the auto industry crisis

The German car industry has been a victim of the crisis for some time, but now it seems to have spread to Sweden. Polestar, part of Swedish carmaker Volvo, will cut 15 percent of its workforce. As a result of the intervention, a total of 450 people will have to find new jobs. Volvo describes the reason for the intervention as ‘challenging market conditions’.

The fact that Polestar is facing ‘difficult market conditions’ was previously reflected in the number of cars sold. In the fourth quarter of 2022, it sold just 12,800 vehicles, nearly 40 percent less than the same quarter a year earlier. The overall electric vehicle market is facing weak demand due to high inflation and limited subsidies.

A new strategy

In November, the Swedish car brand announced that it was implementing a new strategy, due to disappointing figures. The manufacturer wants to be less dependent on key lenders, such as Volvo and Geely. “As part of this strategy, we have to adjust the size of our company, unfortunately also according to the number of employees,” the company explains.

Read also | Tesla produces the best-selling car in the world, with disastrous results

Polestar, which produces fully electric cars, is not alone in the automotive destruction of the EV industry. This week it also became clear that things are not going well for Tesla. Although Elon Musk’s company sold the best-selling car with the Model Y, the company’s margins have dropped significantly. This is due to the reductions that Tesla implemented in order to remain competitive with Chinese competitors.