Polestar, the Volvo’s performance division, predicts it will double its sales next year, with profit increasing accordingly
Polestar has high hopes for 2016, expecting to hit the mark of 1,500 cars sold. If this target is achieved, it will mean doubling sales and consequently the company’s profit. But with BMW’s and Mercedes’s high performance models as rivals, the Swedish division will need a strong marketing statement. And on what better statement could it rely on other than Volvo’s main “strength”: safety. “We want to offer a true performance car,” Polestar Chief Operating Office Niels Moeller said. “This means the cars will be safer when handling at the limit”. The safety focus is important, but in a high-performance niche market Polestar will need stronger selling points: “If you look at AMG not many of those vehicles are being driven during the winter”, Baath said. “Our defining characteristic is a car you can use in all conditions and during all seasons.”
Polestar expects to achieve delivering annual margins of 15 percent to Volvo within five years, which are comparable to what Porsche provides to the Volkswagen Group. With a line-up of just two models, the S60 and V60, Polestar is relying on expending on other markets for the 1,500 cars target to be reached in 2016. The performance brand’s cars will be available in 25 markets by next year – which includes Australia and the Middle East -, up from only 13 now and just eight in 2013. Polestar has two divisions, Polestar Engineered Cars, which produces the tuned S60 and V60, and Polestar Performance Optimization, which offers software tweaks to increase the performance of its cars.
Via Automotive News Europe