More layoffs follow
A lot is changing at Polestar. It was recently announced that Volvo has significantly reduced its share in its sister brand, although the partnership between the two companies remains intact. To keep Polestar going and to realize the brand’s future plans, Polestar has raised almost 900 million euros in financing.
Volvo recently sold a large part of its stake in Polestar. It reduced its share from 49.5 percent to 18 percent. Although the brands both operate under the same Geely umbrella, they distance themselves more from each other. Polestar is therefore no longer a subdivision of Volvo, but is now on a par with Volvo and the many other brands that Geely has in its portfolio. Think of Lotus, Proton and Smart. However, Volvo and Polestar continue to share a lot with each other. That is necessary, because Polestar has considerable plans for the future. To ensure that these actually come to fruition, Polestar has secured 877 million euros in financing. For this purpose, Polestar turned to a combination of twelve major international banks.
According to Polestar, with these almost 900 million euros it is ready to cover the majority of its financing needs. Polestar is expected to be able to break even in 2025. The introduction and of course the sales performance of the Polestar 3 and 4 should of course also contribute to this. However, there are more cogs that need to turn to achieve the 2025 target. For example, Polestar has reduced its employee base by 10 percent since the middle of last year. Another 15 percent of jobs will be eliminated later this year.
– Thanks for information from Autoweek.nl