Polestar Delays EV Launch, Cuts Volume Forecast: Volvo Also Impacted

Volvo is facing related delays with its flagship EX90 electric SUV.

By: Steven Loveday

May 11, 2023 at 11:26am ET

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Polestar just announced yet another delay to its upcoming Polestar 3 electric crossover. This marks the second such delay to date. The relatively new EV-only automaker also had to cut its 2023 volume forecast by as much as 25%. Meanwhile, Volvo is having related delays with its flagship EX90 electric SUV.

After sharing an earlier goal to start production in August 2023, Polestar says it now aims to start production of the "3" in Q1 2024. Dealers expect to see deliveries begin in the second quarter of next year. The delay is linked to software issues with Volvo's new EV platform, which the Polestar 3 is built on.

Gallery: 2023 Polestar 3

Volvo's upcoming EX90 shares a platform and software with the Polestar 3. However, while the two are both fully electric midsize crossovers, the EX90 has three rows and more space for cargo. The Polestar 3 only comes as a two-row SUV.

Volvo had plans to begin production of the EX90 in December 2023. It will be built in the US, at Volvo's factory in North Charleston, South Carolina. Now, the automaker is reportedly projecting deliveries to begin on our shores in Q3 2024, according to a source familiar with the matter.

Gallery: 2024 Volvo EX90 North American Debut

As far as Polestar's volume is concerned, it's now looking at about 60,000 to 70,000 units for 2023 as a whole. Previously, the company was guiding around 80,000 deliveries. In 2022, Polestar delivered a total of 51,491 vehicles.

Sadly, the Swedish automaker also shared that it must cut some 300 jobs or a total of around 10% of its global workforce. Nonetheless, Polestar CEO Thomas Ingenlath shared in a statement:

"I am confident that we will deliver on our growth ambitions and path towards profitability."

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Automotive News notes that Polestar retailers currently only have a single model to sell, and now with the extended delays, they're going to be under even greater pressure. The Polestar 2 is currently the only new EV the company sells. Polestar's first model, the much pricier Polestar 1, is a plug-in hybrid electric vehicle (PHEV) and is only available on the pre-owned market.

The Polestar 2 competes with vehicles like the Tesla Model Y. However, it's not an SUV, and on our shores, SUVs are much more popular. Clearly, Polestar retailers are eager for the upcoming electric crossover to hit showrooms.

Source: Automotive News