Thomas Ingenlath, who is 59 years old, appears to be having far too much fun in his Polestar 3, as he discreetly speeds past stop signs and twists through increasingly tight turns while grinning like a much younger guy.
During Monterey Car Week, the CEO of Polestar declares, “You really can push this car,” as he and other enthusiasts travel the roads north of Pebble Beach, close to Spanish Bay. He compliments the SUV’s ability to remain smooth and comfortable during the drive, all the while maintaining the engaging handling that owners of the brand’s first two vehicles—the hybrid Polestar 1 and the electric Polestar 2—have grown to adore.
He nearly disappears into the light inside of the full-size SUV in his neutral-colored suit, the brightThe only contrast is the seatbelt over his chest. Its style is in line with the car’s ethos, which combines the sporty, minimalistic vibe of a Polestar vehicle with its razor-sharp performance.
The shifting political sands and safe EV ground
However, the Polestar 3 represents a fresh direction for the company on American roads. The first Polestar 3 SUVs constructed in the United States are just now leaving the production lines at Polestar’s Ridgeville, South Carolina plant, despite the fact that the vehicle that Ingenlath drives fast through traffic in Monterey was manufactured in China.
Volvo, a company owned by Geely Holding in China, has long had vehicles produced at that same facility. Now, Polestar, a Volvo offshoot with its headquarters in Sweden and operating under Geely, shares the area as it advances rapidly in the US despite obstacles from the recently implemented tariffs on Chinese electric vehicles.
In fact, South Carolina will supply all Polestar 3 SUVs for the American market, even though the company produces its Polestar 2 in Gothenburg.
According to Ingenlath, “Polestar 3 production is, I call it, on safe ground.”The Volvo brand, which is owned by Geely Holding in China, has long been produced at this same facility. Now sharing the area as it speeds ahead in the US despite obstacles from the recently implemented tariffs on Chinese EVs is Polestar, a spinoff of Volvo with its headquarters in Sweden and operating under Geely.
In fact, all Polestar 3 SUVs for the American market will originate in South Carolina, even though the company’s Polestar 2 SUVs are constructed in Gothenburg.
“I think we’re back on solid ground with Polestar 3 production,” Ingenlath declares.Maybe safe footing, but definitely shifting sands. According to Ingenlath, the demand for EVs in the US market is changing and will take time to stabilize. We must wait and see,” he replies. “But it’s definitely not something that concerns me with regard to our company’s mission.”
Of course, Ingenlath would want even greater adoption rates here, but he would also prefer “a bit more consistency” in US politics.
He is keeping a close eye on the election. “The surrounding noise is quite unsettling,” he remarks. A luxury automotive brand requires consistency in its operations. You must maintain consistency in your model politics, pricing, and other aspects. Of course, we would also love to have aa far more reliable foundation for making decisions. You know, you can’t respond every week or every month. Making significant financial decisions takes years.
The design and development of cars like the Polestar 3 might take up to five years. Actions such as the recent tariffs on electric vehicles (EVs) imported into the United States that were imposed almost overnight pose a serious risk.
financing for electric vehicles
That’s only one difficulty Polestar has encountered recently. A large chunk of Volvo’s ownership in the business was sold off at the start of 2024. Ingenlath downplays the decision, pointing out that Volvo still owns about 18% of the business. He responds, “That’s not insignificant.” “You’re pretty interested in how the company is doing if you own 20% of it.”
To stay afloat, Polestar has appealed to banks for a $1 billion loan. According to Ingenlath, he has not changed the way he runs the company as a result of the ownership shift. Nevertheless, he asserts that it’s wise to keep your attention on the basics.
Regarding his duties to the banks, Ingenlath says, “It’s important now to show them execution capability,” adding that “these superb cars coming.”revealed, that the markets had effectively launched, delivered, and sold cars.
Ingenlath says his current goal is to make Polestar “self-sustaining,” but he won’t say whether Polestar will require additional funding to carry out that plan.
A wager involving SUVs
A key component of that concept is the Polestar 3. Despite being a neat-looking, well-mannered sedan, the Polestar 2 competes in a US market that is dominated by SUVs. “This is more of a compact European sedan that won’t meet the needs of a family,” according to Ingenlath.
who’s where the Polestar 3 should do better, for families who can afford its starting price of $73,400. Compared to the Polestar 2, the car is significantly bigger, more erect, and roomier, but it still promises a taste ofthe same motivational quality.
Significantly, increasing sales is necessary to provide the ground for Polestar’s next releases.
The Polestar 4, a smaller SUV with a strikingly sweeping roofline and a more reasonable starting price of $54,900, swaps some of the Polestar 4’s volume (and all of its rearward visibility) in favor of the iterative nomenclature.The Polestar 5, a sleek and athletic sedan that fits with the brand’s design-forward emphasis, follows. According to Ingenlath, this feature is more crucial to the company’s success than government EV subsidies. “We ought to entice individuals to purchase our products by placing them behind the wheel of a Polestar, as they are incredibly appealing and in high demand,” he asserts.
Later this year, the Polestar 4 will be available, and the Polestar 5 will follow in 2025. Considering that the Polestar 2 has essentially been the company’s only product available in the US market for almost four years, this is an ambitious schedule.
That was not intended to be the strategy. Software problems have caused major delays for the Polestar 3, and they have also prevented its corporate brother, theVolvo EX90. Still, Ingenlath asserts that a major factor in Polestar’s capacity for rapid iteration is the company’s sharing of technology with Volvo.
He queries, “Why would we develop ADAS systems ourselves?” “Volvo, of course, provides us with an excellent technological foundation for the premium vehicle we want to build.”
Despite Volvo’s partial divestment, that technology sharing will go on. Not all of its partners are Volvo. Polestar effectively gave Google complete control over the in-car interface by becoming an early adopter of Android Automotive.
After some initial skepticism, he claims, “that’s one of the nicest and smoothest success stories of actually implementing technology.” “People asked me, ‘Oh my god, what are you doing?’” Will you truly be sleeping with Google? Blah, blah, blah. There were soThat raised a lot of eyebrows. Jesus, our clientele adores it. It’s a huge improvement in terms of usability.
The eagerly anticipated Polestar 3 release, which Ingenlath claims will now occur in “weeks,” will be the company’s greatest advancement.
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