Volvo won't buy Polestar

Volvo CEO Hakan Samuelsson is in the market for a new Polestar but is in no hurry to buy the company.

Speaking to motoring.com.au at last week’s launch of the all-new XC90 the Volvo boss praised the Gothenburg-based tuning house and race team operator, but stated he was happy with existing arrangements under which Volvo and Polestar remain independent but share profits on road car sales.

Polestar-modified S60 sedans were trial-marketed in Australia in 2013-14. Now the brand will roll out a projected total of 700 MY2015 S60 and V60 Polestars to seven other markets including North America, Japan and the UK.

The vehicles are developed by Polestar and feature bespoke engine, powertrain and chassis parts and settings. Assembly in the main takes part on Volvo’s production line and the cars are then hand finished in an adjacent operation in which Volvo also builds a range of police and other models.

Samuelsson says Volvo has no plans to buy the Polestar operation but nonetheless believes it has scope for growth.

“I think that is a brand that can continue to help us with a high-performance version [of certain models],” the Volvo CEO told motoring.cam.au.

“Right now we have a very good cooperation with them… We are building 700 cars and if that is an attractive product [to customers] we can build more,” he stated.

When quizzed, Samuelsson was reluctant to position Polestar akin to Mercedes-Benz’s AMG or BMW’s M divisions. Instead, he suggests it will operate closely with Volvo but remain at arm’s length.

“We want to establish Polestar as a high-performance brand and let’s see [what happens] when we have sold these 700.

“I think we have a [financial] formula… which is rather reasonable with a sharing of the profit which is related to the volumes. We could very well go above the 700, there is no problem,” he said.

Samuelsson says Volvo’s own R Design models will continue.

“In the future we will [still] have R Design — sporty design. But we should have R Design also together with Polestar — same design but also with performance [enhancements]. Bigger brakes, different chassis.

“That is the role for Polestar — it should not be simply chip tuning, it should have an upgrade of the whole car.”

Clearly a fan, Samuelsson admitted he drives a Polestar V60 himself.

“I drive one now and I would like to have another one next year and I think I’m not alone.

“There’s a lot of people being envious of me. I have to park it somewhere they can't see it otherwise the [whole] 700 will go to internal use,” he joked.