To avoid high tariffs, Polestar starts production in the United States

Recently, the United States and Europe respectively announced the imposition of high tariffs on imported cars made in China, prompting many automakers to accelerate plans to transfer some production to other countries.

Polestar, controlled by China's Geely Group, has been producing cars in China and exporting them to overseas markets. Subsequently, Polestar 3 will be produced at Volvo's factory in South Carolina, USA, and will be sold to the United States and Europe.

Polestar CEO Thomas Ingenlath said Volvo's South Carolina plant is expected to reach full production within two months, but he declined to disclose Polestar's production capacity at the plant. Thomas Ingenlath added that the factory will start delivering Polestar 3 to US customers next month, followed by deliveries to European customers.

Kelley Blue Book estimates that Polestar sold 3,555 Polestar 2 sedans, its first battery-powered vehicle, in the United States during the first half of this year.

Polestar also plans to produce the Polestar 4 SUV coupe in the second half of this year at Renault's Korean factory, which is also partially owned by Geely Group. The Polestar 4 produced will be sold in Europe and the United States. Until then, Polestar vehicles expected to begin delivering cars in the U.S. later this year will be affected by the tariffs.

Production in the United States and South Korea has always been part of Polestar's plan to expand overseas production, and production in Europe is also one of Polestar's goals. Thomas Ingenlath said Polestar hopes to partner with an automaker to produce cars in Europe within the next three to five years, similar to its existing partnerships with Volvo and Renault.

Polestar is shifting production to the U.S., where high interest rates to combat inflation have stifled consumer demand for electric vehicles, prompting companies including Tesla to cut prices, lay off workers and delay electric vehicles. Production planning.

Thomas Ingenlath said that Polestar, which laid off employees earlier this year, will focus on reducing material and logistics costs and improving efficiency to control costs in the future, thereby driving cash flow to break even in 2025.