Polestar Revamps Production Strategy as Tariffs Rise

Polestar, a Swedish electric vehicle maker, is shifting its production strategy to avoid steep tariffs on Chinese-made cars. The company has started producing its Polestar 3 SUV in the United States and plans further production in South Korea and Europe. This move comes amidst high interest rates and changing consumer appetites for EVs.

Polestar, the Swedish electric-vehicle manufacturer, has taken a pivotal step to sidestep significant tariffs on Chinese-made vehicles. On Wednesday, the automaker announced the commencement of Polestar 3 SUV production in the United States.

Responding to steep tariffs imposed by the U.S. and Europe on Chinese-manufactured cars, many automakers, including Polestar which is majority-owned by China's Geely, are accelerating plans to distribute production globally. The Polestar 3, now being produced at Volvo's South Carolina plant, will be marketed in the U.S. and Europe.

Thomas Ingenlath, Polestar's CEO, highlighted that, "the majority of Polestar 3 units will be produced at the South Carolina facility," with full production capacity expected in two months. The transition aligns with broader industry adjustments due to economic challenges like high interest rates, leading companies like Tesla to cut prices and delay production.

(With inputs from agencies.)