Volvo Cars is helping Polestar consolidate all global production of the Polestar 3 to its U.S. plant near Charleston, S.C., in a move that Volvo says is about efficiency.
The two brands, which under different corporate structures are both owned by China’s Geely Holding Group, will see only U.S. production of the model. Production in Chengdu, China, will end, Volvo Cars announced in a March 30 release.
The change will happen soon, according to Volvo. "The consolidation of global production of Polestar at Volvo Car Charleston is planned to take place from the fourth quarter of 2026, onwards,” elaborated a Volvo Cars spokesperson in an email response to WardsAuto.
Apart from building Polestar 3 cars in the U.S., Volvo Cars previously announced that it will introduce its best-selling XC60 mid-size SUV to the Charleston production line.
Volvo said it also plans to add a new, next-generation hybrid model to the plant’s production line before 2030. This new model is designed to meet the specific demands of the U.S. market and reinforces the automaker’s long-term commitment to manufacturing in the country.
The automaker adds it has invested $1.3 billion in the South Carolina facility during the past decade, installing production capacity of 150,000 cars per year.
“The U.S. is a very important market for Volvo Cars, both to support our growth ambitions as well as a strategic production site to meet regional and export demands,” said Volvo Cars CEO Håkan Samuelsson in the release.
Meanwhile, Volvo Cars will become the exclusive European importer of another Geely-owned brand, the mobility-focused EV brand Lynk & Co after signing a memorandum of understanding (MoU) with Geely.
The partnership will see Volvo Cars become responsible for Lynk & Co’s commercial and brand operations on the Continent, and aims to increase the sales and servicing business for Volvo dealers, the company said in a March 30 release.
Volvo believes the two brands appeal to different customers and segments, making them natural collaboration partners.
“With this new arrangement, we will leverage our commercial system to support Lynk & Co’s growth ambitions in Europe,” Erik Severinson, chief commercial officer at Volvo Cars, said in the company statement.
