Volvo takes on Tesla over high-performance electric cars

Volvo will take on Tesla in the high-performance electric car race after splitting out its Polestar division into a separate electrified car brand. The move signals a further expansion of the global ambitions of the Swedish carmaker’s Chinese owner Geely Automotive.

Polestar will use its close links with Volvo to “design, develop and build world-beating electrified high performance cars”, although it will have its own management team, reports the Financial Times.

The company promised a “portfolio” of vehicles, indicating it will launch models into different segments of the market rather than only focusing on high priced cars. At least some of the cars it makes will be fully electric, but the company declined to say more, adding it would issue more details about its product plans later this year.

The new business will be run by Volvo’s design chief Thomas Ingenlath, with Volvo’s head of communications Jonathan Goodman becoming chief operating officer.

“I am really excited to take up the challenge of establishing this exciting brand, developing a fabulous portfolio of bespoke products and channelling the passion we have throughout the Polestar team,” Ingenlath says.

Hakan Samuelsson, Volvo chief executive, says Polestar will be a credible competitor in the emerging global market for high performance electrified cars.

“With Polestar, we are able to offer electrified cars to the world’s most demanding, progressive drivers in all market segments.”

Tesla is the market leader in high performance electric cars, with premium rivals such as Mercedes and Audi yet to produce fully-electric premium models.

But Polestar’s move into the field as a separate brand marks a different strategy, in pitching a new marque directly against the Californian electric carmaker.

Volvo has worked with Polestar in motorsports since 1996, and acquired the company in 2015.