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Volvo Cars has announced that it has fully acquired Swedish car tuning company Polestar. The purchase involves Polestar Performance, which produces special Volvo performance models and offers performance-related tuning solutions for Volvos, as well as Polestar Holding, which is the owner of the trademarks.

The deal does not include the racing division. Polestar Racing – which is set to be renamed – will remain under the control of Christian Dahl, the former owner of Polestar. No financial details of the deal have been disclosed, and existing Polestar Performance employees will become Volvo employees.

The Swedish automaker said that Polestar will now be used as the model name for special high-performance Volvos. The new acquisition will also in future utilise Volvo’s twin-engine electrification technology to develop next generation performance cars.

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The two companies have been working in motorsport since 1996, and in recent years signed a cooperation agreement to jointly develop Polestar performance versions of Volvo models, notably the Volvo S60 and V60 Polestar, each with 345 hp and 500 Nm of torque, a 100 km/h time of under five seconds and an electronically-limited top speed of 250 km/h.

This year, Volvo says it expects to sell 750 Polestar versions of the V60 and S60 globally, and added that it is forecasting the numbers to increase to between 1,000 and 1,500 cars a year in the medium term under Volvo’s ownership.