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Volvo buys Polestar in performance push

By Damion Smy, 16 Jul 2015 News

Volvo buys Polestar in performance push

Volvo takes full ownership of its performance partner as part of a plan to increase sales

VOLVO has bought its performance partner Polestar and is looking to double sales of its high-performance models.

Polestar is the performance division of the brand, and is to Volvo what M-Division is to BMW or AMG is to Mercedes. Polestar will now be the name given to Volvo’s performance models. The move is part of Volvo's plan to see sales of Polestar models blossom from the current 750 annual global sales to 1500 worldwide, and take-on cars such as the BMW M3 and Mercedes-AMG C63


“Driving a Volvo Polestar is a special experience,” said Håkan Samuelsson, president and chief executive of Volvo Cars. “We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars.”

Financial details of the deal have not been disclosed. However, Polestar staff will become employees of Volvo, while the racing division will remain under the control of former owner, Christian Dahl. “We are extremely satisfied with the way the performance business with Volvo has developed,” said Dahl. “But we are a racing team first and foremost. This is an opportunity to return our full attention to our core business – to develop and race Volvo cars.”


Australia has played a crucial role as the development test-bed for Polestar’s road cars, with the first road-going Volvo wearing the blue Polestar square badge in the world, the S60 Polestar, released here in mid-2013 as a limited edition run of 50 cars. It played a pivotal role in the case for the latest S60 and V60 Polestar versions, which have become full-time models and are now sold into other world markets.

Polestar Performance AB was formed in Gothenberg, Sweden, in 1996, originally under the name Flash Engineering. Working alongside the Swedish car maker, it started with cars in the Swedish Touring Car Championship, a series that it has won seven times including in 2014, and expanded to supplying tuning and performance accessories for road-going Volvos in 2009.

Polestar is currently running first and second in the 2015 Swedish Touring Car Championship.

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