Volvo seeks investors for its Polestar brand

Volvo Cars is talking to Chinese investors as well as US tech investors as it seeks external finance for its Polestar performance electric car brand, the Swedish car maker’s CEO says.

Car makers are having to strike partnerships to cut the burden and cost of building new electric and autonomous vehicles, while also grappling with the challenges of Washington’s trade war with China and sales delays due to new emissions regulations.

Volvo and Chinese parent Geely have each held a 50% stake in Polestar since 2017, when they agreed to jointly invest $736m to fund its initial development as a luxury car.

“There’s a big interest now to invest in the future of mobility and electrification and autonomous drive. So I think we have a very strong story with Polestar which is attractive to many,” Volvo CEO Hakan Samuelsson said.