Polestar Starts US Production to Sidestep Steep EV Tariffs
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Polestar Automotive Holding UK Plc has started production of its Polestar 3 sport utility vehicle in the U.S. to sidestep the nation’s tariffs on Chinese-made electric vehicles.
The $73,400 model, which was delayed due to software issues, is being assembled at a Volvo Car AB factory in Ridgeville, S.C., and will be sold in the U.S. and Europe. The SUV has been made at a plant in Chengdu, China, since February.
It’s a crucial step for the EV maker that has struggled with operational challenges, deepening losses and rising trade tensions between China and the West. Polestar has been cutting jobs to reduce costs.
The manufacturer had plans to produce in the U.S. even before Washington in May unveiled sweeping tariff hikes on EVs imported from China. As part of its push to diversify its manufacturing footprint, the company will start output of the Polestar 4 SUV in South Korea next year. The company is also working on plans to make future models in Europe.
Polestar 3 – Manufactured in the USA
Our SUV for the electric age has begun rolling off the production line in South Carolina, USA.
Thomas Ingenlath, Polestar CEO: “Manufacturing Polestar 3 in the USA is a crucial step for us. Now we offer customers in America an electric SUV… pic.twitter.com/7EmvKyw2Xe — Polestar (@PolestarCars) August 14, 2024
Polestar delivered some 20,000 cars during the first half of the year, with plans to launch in seven new markets in 2025. The company has said previously that its Polestar 3 and 4 models will help boost sales to more than 155,000 vehicles in 2025, a goal that is up against slowing uptake of EVs in the U.S. and Europe.
Both Volvo Car and Polestar are controlled by China’s Geely. In June, Volvo Car said it’s postponing U.S. shipments of its best-selling fully electric EX30 model from China in the wake of tariff hikes.
Polestar plans to report second-quarter earnings on Aug. 29. It posted a $232 million operating loss for the three months through March.
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