Washington, August 14 (FFN) – Swedish electric vehicle manufacturer Polestar has taken a significant step to sidestep U.S. tariffs on cars imported from China. The company announced on Wednesday that it has commenced production of its Polestar 3 SUV in the United States, marking a pivotal move in its global strategy.
This decision comes as both the United States and the European Union have imposed steep tariffs on electric vehicles manufactured in China. These tariffs have pressured many automakers to accelerate their plans to shift parts of their production to other countries.
Polestar, majority-owned by China’s Geely, has initiated production of the Polestar 3 at Volvo’s plant in South Carolina. The company plans to market this model not only to U.S. consumers but also to buyers in Europe.
Production and Sales Strategy
Polestar’s CEO, Thomas Ingenlath, stated that production at the South Carolina facility is expected to reach full capacity within two months. However, he declined to disclose the plant’s exact production capacity. The first deliveries to U.S. customers are scheduled for next month, with European deliveries to follow shortly thereafter.
In the first half of this year, Polestar sold 3,555 units of its Polestar 2 sedan in the U.S., marking a solid presence in the growing EV market. Looking ahead, the company also plans to manufacture the Polestar 4 SUV at a Renault plant in South Korea, which is partially owned by Geely, with production slated for the second half of 2024 to supply both the U.S. and European markets.
Global Expansion Plans
While U.S. and South Korean production have been part of Polestar’s strategy for some time, the company is also eyeing European manufacturing. Within the next three to five years, Polestar hopes to partner with a European automaker to produce its vehicles on the continent, much like its existing collaborations with Volvo and Renault.
Market Conditions and Future Focus
The shift to U.S. production occurs against a backdrop of high-interest rates aimed at combating inflation, which have dampened consumer demand for electric vehicles. This has forced manufacturers, including market leader Tesla, to reduce prices—a move that has led to job cuts and delays in production plans across the industry.
Going forward, Polestar, which also implemented workforce reductions earlier this year, will focus on cutting material and logistics costs while enhancing operational efficiency, according to Ingenlath.
This strategic move underscores Polestar’s commitment to expanding its global footprint and adapting to the rapidly changing landscape of the automotive industry.
| Aspect | Details |
|---|---|
| Company | Polestar |
| Majority Owner | Geely (China) |
| Current Production Locations | South Carolina (USA), South Korea (Renault plant) |
| Key Models Produced | Polestar 3 (SUV), Polestar 2 (Sedan), Polestar 4 (SUV) |
| Sales in First Half of 2024 (USA) | 3,555 units (Polestar 2) |
| Expected Full Capacity Timeline | Within two months (for South Carolina plant) |
| Upcoming Deliveries | Starting next month in the USA, followed by Europe |
| Future Expansion | Potential European partnership within 3-5 years |
| Market Impact | High-interest rates, reduced consumer demand, price cuts |
| Focus Areas | Cost reduction in materials and logistics, efficiency improvement |
