Volvo wants to get rid of sister brand Polestar, it is selling it to Geely

How many more are coming? Or actually more interesting (very interesting, even): how many more should go? Or are we no longer allowed to quote these artists? We sometimes wonder this when a new car brand is relaunched. Because how many brands of cars does one group need? In any case, things are going badly for the young Polestar brand and Volvo is preparing to abandon the young brand.

Swedish Volvo has been part of the Chinese concern Geely for a long time. A few years ago, the parent company decided that the Volvo Polestar performance label could stand on its own two feet and a new car brand was born. That left us wanting more and Volvo also added Lynk & Co, Lotus, Zeekr and half-sister Smart brands. That’s already five brands from one Chinese group in the Netherlands, and Geely has the most brands outside of our country.

Geely is not the only one with brand greed. Stellantis thinks that with the niche brands DS and Abarth, there is still room for Lancia. And while they already have Citroën, Peugeot, Opel, Fiat, Chrysler, Maserati, Alfa Romeo and Jeep. For example, Volkswagen suddenly had to launch another Cupra. We haven’t read it, but it feels small. For BMW, for example, it is more obvious, they also have Rolls-Royce and Mini.

Volvo wants to get rid of Polestar

The brand got off to a great start with the Polestar 1 | Photo: © Polestar

We don’t want to claim that a ‘multi-business’ strategy is by definition invincible, but it is certain that things are not going so well at Polestar. Sales are disappointing and 15 percent of the workforce initially had to leave. Volvo is currently the largest shareholder of the sister brand, and the brand would like to lose that shareholder. Even now Polestar thinks it won’t make a loss again in 2025.

That’s why Geely’s parent group must open its wallet to take shares. It is a complex construction. According to European Car News Geely owns 79 percent of Volvo and Volvo owns 48 percent of Polestar’s stock – a case of vest pockets. The deal has not yet been finalized, but Polestar announced the possibility in a press release.

It’s really sad to see a Polestar like this

The Volvo V60 Polestar you see above is one of the coolest station wagons ever made. All the Volvos that Polestar touched were beautiful things. And that makes it a shame that things are not going well now. Because what if Polestar just remained a label? Of course there is a market for an aftermarket Volvo EX30 sports car with Öhlins dampers.