Volvo has announced that it will no longer provide funding for the fully electric Polestar brand as it wants to focus on the production of its own vehicles among other investments.
“As we move into the next phase of our transformation, including deploying large-scale investments in the creation and adoption of new technologies and future-fit production facilities, our focus is on developing Volvo Cars and concentrating our resources on our own ambitious journey,” Volvo said in a statement.
The Swedish carmaker plans to hand over its 48.3 per cent stake to Polestar’s current majority shareholder Geely Holdings, headquartered in China.
However, the two’s relationship isn’t entirely over just yet though, as Volvo says it’ll still collaborate with the EV-only brand on vehicle research and development, manufacturing, and after-sales.
Polestar hasn’t had the easiest journey since it was spun off into its own brand in 2017, with the company reporting its shares being 83 per cent down since June 2022, according to Reuters.
On the other side of the coin, Volvo celebrated a record year for car sales in 2023, reporting its highest revenue and operating profit in 97 years.
Looking ahead, this year is shaping up to be a big year for Volvo as doubles down on becoming a fully electric brand by 2030. New models such as the computer on wheels that is the EX90 and the pint-size EX30 are due to arrive in New Zealand this year, while more new models are expected to be announced in due course.
The brand will also kill off the production of its diesel engines in 2024 and “refresh” its plug-in hybrid offering as part of its electrification journey.