Home Automobile Polestar to fire 15 per cent of its workforce

Polestar to fire 15 per cent of its workforce

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Polestar to fire 15 per cent of its workforce

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After lacking its gross sales targets in 2023, electrical automotive maker Polestar is swinging the axe to chop prices, and cut back its reliance on its homeowners, Volvo and Geely.

The Sweden-based automaker confirmed to Reuters and Seeking Alpha that it plans to retrench 450 staff, or about 15 per cent of its workforce. Polestar’s total headcount is low as a result of it makes use of an “asset gentle” strategy, with manufacturing achieved by Volvo and Geely.

A spokesperson for Polestar informed the information company the automaker is “decreasing exterior spend and, regrettably, additionally our variety of staff”.

The corporate delivered 54,600 vehicles in 2023, a small six per cent enhance over its 2022 gross sales, and nicely beneath the preliminary goal of 80,000, which was later revised right down to 60,000. Polestar blamed a “difficult market” for lacking its 2023 targets.

Among the many challenges confronted by automakers in 2023 had been slowing progress for electrical autos (EVs), and diminished EV subsidies in lots of jurisdictions. Tesla managed to maintain gross sales rising by slashing costs.

In November 2023, Polestar accepted these altering circumstances and outlined a brand new near-term plan focussing on its revenue margins. It additionally secured an extra US$450 million ($685 million) in loans from Volvo and Geely.

CEO Thomas Ingenlath informed the media Polestar will retain its premium positioning and focus on profitability, which means it will not lower costs. On the time Polestar was planning to hit round 155,000 gross sales per yr by 2025, down from an earlier goal of 290,000.

Beginning life within the late Nineties as a racing outfit, the corporate started tuning Volvo vehicles within the mid-2000s, and was purchased out by Volvo in 2015. Two years later, Volvo and Geely introduced Polestar would grow to be a standalone model focussing on electrified — later totally electrical — autos.

After merging with a particular function acquisition firm (SPAC) in June 2022, Polestar has been listed on the tech-focussed Nasdaq inventory alternate. Its share value has fallen by round 80 per cent since then.

Though it’s now a public firm, Volvo and Geely personal nearly 95 per cent of Polestar’s shares.

Polestar presently has two vehicles in manufacturing, the Volvo XC40-based Polestar 2 high-riding sedan, and the bigger Polestar 4 crossover coupe.

The primary deliveries of the Volvo EX90-based Polestar 3 are anticipated to start out across the center of 2024. Each the Polestar 3 and Polestar 4 have been confirmed for Australia.



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