Volvo “separates” from Polestar: what is behind it?

It’s already been hinted at and now it’s official: Volvo is giving away the Polestar. I read in the last report that the Polestar was nearing the end, but it is not. But what is the plan?

Polestar: Volvo is parting ways with Geely

Geely Holding becomes the new major shareholder of Polestar and Volvo reduces its stake from 48.5 percent to 18 percent. Geely is taking a “significant stake in Polestar”, although this has not been disclosed. This is the first time that Geely Holding has a “direct stake in Polestar”. But what exactly does that mean?

Polestar is now a common brand of Geely along with Volvo, Lotus and Zeekr. You say that you have “equal rights” as a “fully independent member of Geely Group”. But opportunities are being created for new shareholders.

Geely has “great confidence” in Polestar and says its “close relationship with Volvo remains unchanged.” Volvo still has an 18 percent stake and Polestar electric cars will continue to appear at Volvo dealers.

As expected, Volvo’s loan will be extended until 2028 and Volvo will remain a “strategic investor in Polestar.” So in the future we will continue to see cars that share things, like the Polestar 2 and the Volvo EX40 or EC40.

Polestar: “The next phase of development”

This “next development phase” also means that Polestar can change a bit under the new banner (in fact, it was already part of Geely). With the generation planned after the Polestar 6, expected around 2026, you will see less parallels with Volvo.

In the end it is like Volkswagen AG or Stellantis, without doubt Geely brands will continue to use their cooperation and you will see a lot of similarities. This is the start of an exciting phase for Polestar.

From now on you are more free, but you also have to give. Last year it was not possible to meet expectations, but two new electric cars and two SUVs are due for 2024 and in 2025 the brand would like to finally be in the profitable area.

So no, Volvo is not giving up Polestar, but the brand is being re-located to Geely and in the future it is likely to operate more through China than Sweden.

In short: Volvo needs money for a change, wants to put some money into Polestar, but Geely is holding on to the brand. This one gets a chance and stays. Only time will tell if all brands have a future with Geely. In the long run, it may be that big corporations will also collaborate with other brands.

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