By Compiled by Spectator staff
Swedish electric vehicle manufacturer Polestar announced on Thursday, 3 July, that it will produce its new SUV model, the Polestar 7, at Volvo鈥檚 plant in Slovakia. The company is shifting more production from China as it seeks to reduce its exposure to high European and US tariffs, according to Reuters.
鈥淧olestar is taking the next step in diversifying its contract manufacturing footprint by expanding it to Europe,鈥 the company said.
Polestar stated that the two Swedish companies 鈥 both controlled by China鈥檚 Geely and its owner Li Shufu 鈥 have signed a memorandum of understanding, and the new model is scheduled to launch in 2028.
The Polestar 7 will be developed in line with the company鈥檚 recently announced strategy to use architectures from within the Geely Holding Group. It will utilise a technology base from Volvo Cars, benefiting from group component sharing, cell-to-body technology with next-generation battery density and performance, as well as the next generation of in-house developed e-motors. Adaptations will be made to deliver the driving experience and performance characteristics for which Polestar is known.
鈥淲orking with Volvo Cars to develop and manufacture the Polestar 7 in Europe is a unique opportunity that will strengthen our position in our home market,鈥 said Michael Lohscheller, Polestar CEO, as cited in the press release. 鈥淥ur strategy of utilising Group architectures as the base for our future model line-up gives us access to the best and latest technologies in a cost-efficient manner. With a design and sporty driving characteristics that are instantly recognisable, the Polestar 7 will set new standards in the premium compact SUV segment.鈥
H氓kan Samuelsson, President and CEO of Volvo Cars, added that their collaboration with Polestar on the development and manufacturing of the Polestar 7 underscores how Volvo Cars and Polestar continue to leverage synergies to efficiently deliver outstanding vehicles tailored to their distinct customer segments.
Polestar, which has yet to turn a profit, currently faces tariffs of 28.8 percent on cars imported into Europe and over 100 percent on those imported into the United States, Reuters reported.
The European Union imposed tariffs on Chinese-made EVs last year, citing what it described as unfair subsidies from the Chinese government 鈥 a claim Beijing disputes.
These tariffs have affected Polestar more than many other European carmakers, as the majority of its vehicles are produced in China, either by Volvo Cars or Geely.
鈧1.2 billion Volvo鈥檚 factory near Ko拧ice, in eastern Slovakia, is expected to begin production in 2026, with an annual capacity of 250,000 vehicles. The location offers strong logistical links to European markets and access to a well-established supplier base.