Volvo & Polestar: Moving EV Manufacturing to the US
Navigating challenging market conditions
The restructuring follows Polestar’s December 2025 announcement of a US$300m debt-to-equity conversion agreement with Geely Sweden Holdings, which maintains a controlling stake in Volvo Cars.
In March 2026, Polestar secured a US$300m investment from purchasers including Crédit Agricole CIB, Vida Finance S.A., Innovator Limited and Proximastar Holdings Company Limited as part of efforts to strengthen its financial position.
Manufacturing operations face significant headwinds as 100% tariffs on Chinese-made EVs impact the US market, with multiple companies adjusting or abandoning EV production plans.
“As market conditions remain challenging, we continue to take steps to make our organisation and operations more efficient,” Michael said when announcing Polestar’s operational results for the third quarter of 2025.
