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Geely Invests $750 Million in Polestar as it Looks to Take on Tesla

Volvo and parent company Geely have announced an investment of $756 million USD in the newly repositioned Polestar electric vehicle brand. The investment will be used to build a dedicated manufacturing facility for Polestar vehicles in Chengdu, China. The automaker says this will “radically shorten the time Polestar needs to commercially launch its cars.” Polestar is planning its second model, the appropriately named Polestar 2, for an arrival in late 2019. The 600 hp Polestar 1 coupe, meanwhile, will enter production at the Chengdu facility in early 2019.

Polestar went light on details in regards to its second model, only saying it will be “the first fully-electric car launched by Volvo Car Group, and the first of a total of five fully electric Polestar- or Volvo-branded vehicles to be launched between 2019 and 2021.” If the Polestar 1 is any indication, the automaker wants to make EVs that are exciting for car enthusiasts. The hybrid coupe, unveiled today, produces 600 hp and 730 lb-ft of torque thanks to two powerful electric motors and a 2.0-liter turbocharged and supercharged four-cylinder engine. It also has an electric range of 93 miles – more than any other plug-in hybrid vehicle.

With this cash injection, Polestar will be able to rapidly develop and introduce future product as the automotive industry scrambles to bring more EVs to market. The automaker says this should provide it with a strategic advantage as competing companies also look to capitalize on the demand for hybrids and EVs and work to meet increasingly strict government regulations for emissions and fuel economy.

This article first appeared on AutoGuide

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