The Volvo Car Group has bought the Swedish race-car producer Polestar and will use its name to expand a high-performance car line in order to compete against Mercedes AMG and BMW’s M models.
Volvo announced that Polestar sales will double from 750 units targeted for this year to 1, 500 cars. The car brand is already selling tuned versions of Volvo’s V60 wagon and the S60 sedan under a cooperation deal that was signed in 2013. Volvo’s CEO, Hakan Samuelsson, explained that the carmaker decided to bring this experience to more Volvo drivers, by using all the resources of Volvo to develop Polestar. The Swedish carmaker is following Jaguar Land Rover and the German BMW and Mercedes-Benz in terms of producing sportier versions of its regular car models.
Volvo was bought by the Chinese Zhejiang Geely Holding Group Co. five years ago. The brand decided to overhaul its product line-up and try to increase its global annual sales from this year’s target of 500,000 cars to 800,000 units by the end of 2020. The Polestar S60 model is priced at $60,225, costing a one third more that the high-end regular model. It has a 350 HP engine that reaches 62 miles per hour in 4.9 second, faster than the regular’s 5.9 second-reach.
Volvo did not give any information on the financial side of this deal. The new purchase does not include Polestar’s racing unit however, but that unit is at the moment collaborating with Volvo, being controlled by owner and CEO Christian Dahl.
By Gabriela Florea