Automotive industry Electric car manufacturer Polestar wants to produce in Europe
The Swedish Tesla competitor Polestar, which is controlled by Chinese owners, wants to produce cars on its home continent for the first time. The new Polestar 7 model is to be produced in Europe, Polestar boss Michael Lohscheller told news agencies.
17.01.2025, 00:36
17.01.2025, 00:40
SDA
"The costs are significantly lower than shipping cars around the world," the former Opel boss told German news agencies DPA-AFX and DPA. "Of course, it also gives us protection from tariffs." Last year, the EU introduced punitive tariffs on electric cars produced in China.
So far, Polestar has been producing in Asia, mainly in Chinese plants, and in the USA at Volvo. According to Lohscheller, it is not yet clear where exactly and with which partner the new SUV will be built in Europe, and the date for the market launch has not yet been set.
The manager wants to broaden the business in Europe as a whole, including in Germany and France. Until now, the car manufacturer has mainly sold its cars via online orders and then delivered them from its few showrooms. In future, Polestar cars will also be available to buy from around 300 dealers worldwide.
Sales decline in 2024
The electric car manufacturer experienced a lean period, both in terms of sales and financially. In 2024, 44,851 cars were sold to customers, 15 percent fewer than in the previous year. On Thursday, the shares fell by more than ten percent in New York trading after the company reduced its sales estimate for 2024.
However, Polestar CEO Lohscheller said that deliveries should grow by an average of 30 to 35 percent annually until 2027. This year, he wants to break even in terms of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). Polestar has undergone a radical overhaul and cut around a quarter of its jobs, with around 600 of the previous 3,100 employees having to leave. The company wants to be financially independent by 2027 and also be able to finance its own investments.
Income from the sale of CO2 certificates should also contribute to the business. Lohscheller expects this to generate revenue in the three-digit million range this year.
Unclear prospects in the US market
Meanwhile, Polestar has a problem in the USA. The US government decided this week that no connected cars from manufacturers under Chinese control may be sold from model year 2027 onwards. This also applies to vehicles produced in the USA.
Although Polestar builds cars in the US state of South Carolina, the majority is held by the Chinese Geely Group and its founder Li Shufu. "We will find solutions," said Lohscheller. The USA is an important market - and there is still time.
