Volvo’s Polestar Division To See Profit Growth in 2016
In the next 5 years Volvo’s Polestar will be delivering annual margins up to 15%. This will come despite Polestar’s conservative sales target which in comparison Mercedes AMG aims to increase it volume to 30,000 units a year by 2017 and a lineup that currently includes just two models, the S60 and V60.
Polestar’s current small portfolio of vehicles will be available in 25 markets by next year, up from 13 now, which includes Australia and the Middle East, and just eight in 2013. Polestar has not revealed the new markets for the cars yet. Polestar will get support from Volvo’s marketing team and its global dealer network.
One of the key reasons why Volvo decided to launch its Polestar performance brand is because of the success that its rival premium automakers have had in this niche segment in recent years. Between 2009 and 2014, the BMW M and Mercedes-AMG vehicles increased their global sales by 41%. By comparison, overall global sales of premium cars were up just 9% during the period.
Volvo Car Corp. acquired 100 percent of Polestar Performance AB in July 2015. Prior to the purchase, Polestar was an independent firm that Volvo hired to jointly develop high-performance versions of its vehicles. The companies also have been working together in motor sport since 1996. Former Polestar owner Christian Dahl retained control of Polestar’s racing division and renamed it Cyan Racing, which is now the official motorsports partner to Polestar.
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