Polestar to Build First US-Made Electric SUV

Polestar to Manufacture First US-Made Electric SUV

Polestar, the independent electric performance brand affiliated with Volvo Car Group, is preparing to produce its inaugural all-electric SUV within the United States.

Production Location and Vehicle Lineup

The company announced on Wednesday that assembly of the Polestar 3 will take place at a shared manufacturing facility alongside Volvo Cars in Ridgeville, South Carolina.

This new SUV expands Polestar’s existing lineup, which currently includes the all-electric Polestar 2 sedan and the hybrid Polestar 1 grand tourer. Global production of the Polestar 3 is anticipated to commence in 2022.

Benefits of US Production

According to Polestar COO Dennis Nobelius, establishing production within the U.S. will yield several advantages. These include reduced delivery lead times for customers.

Furthermore, manufacturing locally will lessen the environmental impact linked to international vehicle transportation and contribute to a more competitive price point for the Polestar 3.

“These factors collectively enhance the brand’s competitive standing within the crucial American market,” Nobelius stated.

Expanding Retail and Service Network

Polestar is also focused on bolstering its customer experience in the U.S. through an expanded retail presence.

The company intends to launch approximately 25 retail locations across the country this year. These spaces will offer test drive opportunities, alongside convenient services like complimentary pickup and delivery, as well as mobile servicing options.

Recent Investment and Brand Evolution

The Polestar 3 is specifically designed with U.S. consumers in mind, marking it as the first vehicle from the brand to be manufactured domestically.

This announcement follows a recent fundraising effort, where Polestar secured $550 million in its initial external investment round. Key investors included Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding, and Zibo Hightech Industrial Investment.

Additional participation came from SK Inc., a South Korean conglomerate, and a diverse group of other investors.

From Performance to Electric

Polestar originally functioned as a high-performance division within Volvo Cars.

However, in 2017, the brand underwent a strategic shift, being redefined as an electric performance marque. This repositioning aimed to create engaging and enjoyable electric vehicles – a segment initially pioneered and largely dominated by Tesla.

Ownership and Global Operations

Currently, Polestar is jointly owned by Volvo Car Group and Zhejiang Geely Holding of China. Geely acquired Volvo in 2010.

Since its inception, Polestar has established a manufacturing plant in China, developed a worldwide sales and distribution network, and successfully launched two vehicle models: the Polestar 1 and the all-electric Polestar 2.