Volvo to stop funding Polestar, hand control to Geely

Volvo to stop funding Polestar, hand control to Geely

Volvo is reportedly set to stop providing funding to Polestar and will transfer responsibility of the EV brand to Geely. According to Automotive News Europe, Zhejiang Geely Holding, the parent of both Swedish brands, will take on the funding for Polestar.

The proposed deal will also see Geely taking over Volvo’s 48% stake in Polestar, relieving the pressure on the Swedish automaker. Volvo’s heavy involvement in Polestar has been criticized by industry analysts, who view the EV brand as a drag on its resources, with some having called for Polestar to be brought back into the Volvo-Geely ecosystem.

The switch, should it happen, will certainly ease things for Volvo, which has been fighting its own battles and last year started to cut 1,300 jobs, part of a drive to reduce costs across global operations.

Volvo to stop funding Polestar, hand control to Geely

While welcoming Volvo’s decision to focus its resources on its own development, Geely says it will fully support Polestar to remain as an independent brand. According to analysts, Polestar would need to an additional US$1 billion (RM4,71 billion) over the next 12 months to keep it afloat.

Polestar has been going through a rough patch in recent times. The brand, which Volvo and Geely made into a stand-alone entity in 2017, isn’t just facing increased competition but is also struggling to match the price reductions made by Tesla and BYD.

It failed to meet its 2023 sales target of 60,000 units, delivering 54,600 cars globally last year. The 60,000 unit target was itself a scaling down of the 80,000 unit target it had initially set at the beginning of 2023. Its recent announcement of plans to cut around 450 jobs, or 15% of its workforce, globally may have sped up the bailout process.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • ROTI CANAI on Feb 03, 2024 at 10:08 am

    buat wayang, rename polestar as proton. kaodim

    Like or Dislike: Thumb up 3 Thumb down 5
    • Dah Menang Semua on Feb 05, 2024 at 8:05 am

      Polestar to squeeze-dry Volvo
      Geely buy 1 free 1 company

      Like or Dislike: Thumb up 4 Thumb down 0
  • Peppa on Feb 03, 2024 at 2:37 pm

    I am looking forward to geely downfall next. So exciting

    Like or Dislike: Thumb up 5 Thumb down 15
    • Peppa no brain on Feb 04, 2024 at 1:16 am

      lmao you are a known racist!

      Like or Dislike: Thumb up 4 Thumb down 1
    • Endia on Feb 04, 2024 at 9:03 am

      Geely downfall? Hahahahahaha. You think Chinese or east asian people have low IQ like your kind ka. You should google up global IQ ranking and see where you stand first. Geely and like most chinese companies they are well known to save mat salleh companies. They can make bankrupt companies into the richest companies. Ask Elon Musk. Whereas your kind are famous to make successful companies bankrupt. Hahahaha. Facts hurts. Google global IQ rank please

      Like or Dislike: Thumb up 2 Thumb down 9
      • Dah Menang Semua on Feb 05, 2024 at 11:17 am

        I guess your nationality
        must not be Malaysian
        Such racism mindset

        Like or Dislike: Thumb up 7 Thumb down 0
      • East Turkestan on Feb 05, 2024 at 1:35 pm

        Yeah very nice, resort to racism. No difference between your kind and the Westoids. Just go migrate to CCP land if you don’t like his kind

        Like or Dislike: Thumb up 3 Thumb down 0
      • CCP and BJP are no different on Feb 05, 2024 at 1:37 pm

        Don’t bring China India politics into Malaysia. Both CCP and BJP are horrible

        Like or Dislike: Thumb up 7 Thumb down 1
      • Go back to /k on Feb 05, 2024 at 1:45 pm

        This guy is confirm a ktard

        Like or Dislike: Thumb up 3 Thumb down 0
    • i wonder what do you benefited from geely downfall. orang hati busuk , usually very short life

      Like or Dislike: Thumb up 1 Thumb down 1
      • Dah Menang Semua on Feb 05, 2024 at 11:21 am

        I’m not sure about fortune telling
        “hati busuk” bisa jadi PM 2-kali
        tapi jgn kita yg jadi “hati busuk”

        Like or Dislike: Thumb up 4 Thumb down 1
  • Squid on Feb 05, 2024 at 4:36 pm

    Polestar yang problem, Malaysian yang kecoh lol

    Like or Dislike: Thumb up 1 Thumb down 0
 

Add a comment

required

required