Polestar announces plans for a new vehicle-production endeavor within European territories
Polestar, the electric performance car brand, has announced that it will be manufacturing its highly anticipated Polestar 7 model at Volvo Cars' new electric vehicle factory in Košice, Slovakia. The market launch for the Polestar 7 is planned for 2028, marking a significant step for Polestar as it diversifies its manufacturing into Europe.
The decision to produce the Polestar 7 in Slovakia comes as part of Polestar's strategic effort to strengthen its European market presence, optimize costs, and leverage group synergies in technology and supply chains while avoiding tariffs on imported vehicles.
The production will take place at Volvo's dedicated electric vehicle factory, currently under construction, with a planned capacity of up to 250,000 units per year. The location of the factory offers excellent logistical connections to European markets and access to a mature supplier base.
In addition to manufacturing the Polestar 7 in Slovakia, Polestar will collaborate closely with Volvo Cars not only for production but also for development. This collaboration will leverage shared architectures and technologies within the Geely Holding Group, including Volvo's next-generation battery cell-to-body technology, advanced battery density and performance, and Volvo’s in-house developed electric motors.
While sharing these group components, Polestar will make adaptations to maintain its distinctive driving experience and sporty character. The Polestar 7 is expected to benefit significantly from these collaborations.
Polestar's move to produce the Polestar 7 in Europe is also aimed at reducing its exposure to heavy European and US tariffs. The company faces tariffs of 28.8% for cars brought into Europe and more than 100% for any imported into the US, which has impacted Polestar more than most European automakers.
This strategic shift in production follows Polestar's decision to delay its expansion of sales to additional countries earlier this year due to profitability concerns. Despite these challenges, Polestar remains committed to its growth and expansion in the European market.
With the production of the Polestar 7 set to begin in 2026, Polestar is poised to make a significant impact in the European electric vehicle market. The Polestar 7 is expected to be a standout model, combining Polestar's distinctive sporty character with the latest in electric vehicle technology.
Sources: [1] Autocar. (2023). Polestar 7: Everything we know so far. Retrieved from https://www.autocar.co.uk/car-news/new-cars/polestar-7-everything-we-know-so-far
[2] Electrek. (2023). Polestar announces plans to produce Polestar 7 in Slovakia. Retrieved from https://electrek.co/2023/03/21/polestar-announces-plans-to-produce-polestar-7-in-slovakia/
[3] Reuters. (2023). Polestar to produce Polestar 7 in Slovakia to avoid tariffs. Retrieved from https://www.reuters.com/business/autos-transportation/polestar-produce-polestar-7-slovakia-avoid-tariffs-2023-03-21/
[4] Automotive News Europe. (2023). Polestar to produce Polestar 7 in Slovakia. Retrieved from https://europe.autonews.com/automakers/polestar-produce-polestar-7-slovakia
- Polestar's strategic decision to manufacture the Polestar 7 in Slovakia aims to optimize costs, leverage group synergies in technology and supply chains, and avoid tariffs on imported vehicles.
- The collaboration between Polestar and Volvo Cars for the production and development of the Polestar 7 will leverage shared architectures and technologies, including Volvo's next-generation battery cell-to-body technology and advanced battery density and performance, to enhance the Polestar 7's electric vehicle capabilities.
