Latest news with #LiShufu
Business Times
6 days ago
- Automotive
- Business Times
Volvo Car posts US$1 billion loss over impairment, tariffs
[STOCKHOLM] Volvo Car posted a US$1.03 billion operating loss in the second quarter, hit by a previously announced impairment charge over model delays and the escalating cost of tariffs. The automaker's retail sales plunged 12 per cent to 181,600 vehicles in the period. Volvo's cost-cutting programme is on track, the company said on Thursday (Jul 17). Controlled by China's Zhejiang Geely Holding Group, Volvo is one of the more tariff-exposed car brands. Tariffs and past development setbacks have weighed on profitability and sales of its battery-powered models, the EX90 sport utility vehicle and ES90 sedan. On Wednesday, the company announced plans to start producing its best-selling XC60 at its US plant, a sport utility vehicle previously imported from Sweden. Volvo earlier this week warned that it would take an 11.4 billion Swedish kronor (S$1.5 billion) impairment charge over model delays and the growing cost of tariffs. Chief executive officer Hakan Samuelsson was brought back in April by owner Li Shufu to turn around the company by aligning it more closely with the Geely group. He's also pushing through a sweeping 18 billion-krona cost-cutting program set to affect roughly 3,000 jobs. Earlier this month, Samuelsson said the company would delay large-scale production at its under-construction Slovakia plant to early 2027, from a previous target of 2026, to better align product launch timelines. Volvo has also agreed with sister brand Polestar to produce the upcoming Polestar 7 SUV at the same facility starting in 2028. BLOOMBERG
Bloomberg
15-07-2025
- Automotive
- Bloomberg
China's Geely Sweetens Bid to Take EV Maker Zeekr Private
Geely Automobile Holdings Ltd. sweetened its offer to take premium electric car maker Zeekr Intelligent Technology Holding Ltd. private, a deal that helps billionaire Li Shufu streamline his sprawling business empire. Geely said in a filing to the Hong Kong exchange on Tuesday that the two sides had entered into a merger agreement. Under the pact, Geely would buy all the stock in the US-listed firm that it doesn't yet own for $2.687, or $26.87 per American depositary share.
Yahoo
11-07-2025
- Automotive
- Yahoo
Polestar increases focus on Europe as tariffs stall U.S. sales, China traction remains elusive
Polestar's sales in Europe were up more than 80 percent in the first half of 2025, helped by the arrival of the Polestar 3 and Polestar 4 SUVs. CEO Michael Lohscheller expects to keep the momentum going as Polestar this year launches sales in Europe's fourth-largest market, France, and adds the Polestar 5, a large sporty sedan that is a rival to the Porsche Taycan and BMW i7. The emphasis on Europe comes as high tariffs on the automaker's China-built cars make them too expensive to sell in the U.S., where sales were down nearly a quarter in the first half. In China, meanwhile, Polestar has been struggling because it is seen as a Scandinavian brand. 'So, when I see all the growth in Europe, I clearly focus on Europe,' said Lohscheller, who took over as CEO last October. He discussed this and more with Automotive News Europe Managing Editor Douglas A. Bolduc in a video call on July 10. In May, Polestar paused its 2025 forecast becasue of a potential hit from U.S. tariffs. When will you start providing an outlook again? We have paused giving any financial guidance because of the situation around the world, particularly in the U.S. Currently, I can't say when we will bring this back because the uncertainty continues. Sign up for the Automotive News Europe Interview of the Month newsletter delivering exclusive interviews with top auto executives. When will Polestar be profitable? We said in early January that we target cash flow breakeven in 2027. That remains the time frame. We have made a lot of progress on certain fronts. If you look at our global sales figures, we were up 38 percent [to 18,049], in the second quarter and 51 percent [to 30,319] in the first half. We are adding products and retail locations. Those are indicators that we are doing the right things. However, there are more challenges to work through. We will publish financial results for the second quarter at the end of August. Polestar in June secured a $200 million equity investment from PSD Investment, a company controlled by Geely Holding founder Li Shufu. What is Polestar's current cash runway and how much more funding does the company need to remain solvent through 2026? We will disclose that at the end of August when we publish the financial results. Li Shufu holds 66 percent of Polestar through PSD investment and the Swedish subsidiary of Geely. Why has the company struggled to find outside investors? Our goal is to connect with the right partners in terms of funding and find solutions for that. The $200 million in incremental equity is a very strong and encouraging signal that shows we are working through the challenges. Roughly how much have the U.S. tariffs cost and how much have the European tariffs cost? It is in the single-, double- or triple-digit millions? We will not give you a number for that, but I want to put the U.S. business a little bit into perspective. In the first half, 76 percent of our total sales were in Europe while 8.5 percent were in the U.S. Last year, the U.S. accounted for 17 percent of our first-half global sales. There are two messages here: 1) Europe is growing very strongly, in particular the U.K., where we are up 217 percent in the first six months of the year; 2) Although 8.5 percent coming from the U.S. is still very important (nearly all the volume came from the Polestar 3, which is made at sister brand Volvo's U.S. plant). But it's obvious there is uncertainty with regard to the U.S. business. We are working through that, but that is why I also cannot give you an amount. We are starting production in South Korea as well, which is another important manufacturing footprint for us (and will reduce the 28.8 percent tariff Polestar faces on China-made cars shipped to the EU to 0 percent). In addition, we announced last week that the Polestar 7 will be produced at Volvo's factory in Slovakia. This embedded content is not available in your region. Yes or no: If you could get in a time machine and go back to 2019-20, would you still decide to make all your cars in China? It's a lot easier to answer that in hindsight, but looking forward, I am totally convinced that we are doing the right things: 1) Localization in the different regions is the way to go; 2) Europe is by far our most important and fastest growing market, so we have to produce there; and 3) The Polestar 7 is a premium compact SUV, which is a very big segment. This will give Polestar a broader appeal, meaning more volume. Now we have to execute and work through the different challenges. And some of them, in fairness, are outside of our control. When will Polestar know the true impact of the tariffs on the business? It's probably fair to say once we close this year and can compare it with 2024, we will have some indicators and we can give some more color around how we developed. I want to reiterate that the U.S. business is important, but it's not as important as the European business. I mean, 76 percent versus 8.5 percent is a big gap. That is why going into a big EV market such as France and other European markets is what matters for Polestar right now. That's what we are focused on, and we are doing really well. Polestar is up 78 percent in Europe to 15,868 after five months, according to figures from Dataforce, is that growth pace sustainable for the full year? The numbers you quote are correct. However, whether we continue that pace depends how the market develops, how the competition develops and many other factors. So, while I won't commit to a number, I will say we have strong momentum and we want to maintain it. Is there a metric you can cite to underline how essential it has been to be added to Volvo dealerships in Europe? This is super important and one of the main reasons why we are doing so well. While I don't have any specific metric, I can say that once a customer is interested in a car the second question you get is: Where can I service the car? We now have 1,700 Volvo service points where Polestar customers can go if something happens. That is crucial to both fleet and retail customers. The whole commercial set up together with Volvo is of highest importance. Also, nearly all Polestar retailers are also Volvo retailers. So, it's a win for everyone. What is Polestar doing to offset the 28.8 percent tariff on models made in China and sold in the EU? Does the customer have to pay more? How much? We are always laser focused on improving cost, but we have to accelerate those cost improvements. That's exactly what we are doing. At the same time, I believe that tariffs are not a long-term solution because at the end of the day we want to offer emission-free mobility to consumers, and they want to have a wider choice of vehicles that provide this. Therefore, adding duties is not helpful to anybody The only offset in the U.S. is to not sell China-made cars there, right? Localization is the key. We see that with the Polestar 3 which is made in the U.S. It is a phenomenal car in terms of size, technology and performance for the U.S. (in the first half it accounted for 91 percent of Polestar's U.S. sales, according to the Automotive News Data Center). What were Polestar's six-month sales in China and is the company engaging in the China price war? China is difficult for us because we are being perceived as a Scandinavian brand. In a way that is a compliment, because that is what we are. The Chinese market is hypercompetitive, so we need to balance volume and profitability with limited resources. So, when I see all the growth in Europe, I clearly focus on Europe. Roughly, what percentage of Polestar's sales are coming from China? It's very low. Let's talk about the cadence of Polestar's next launches. Next is the Polestar 5, which is a Porsche Taycan rival, set for later this year, right? Correct. Then comes the Polestar 6 roadster followed by the Polestar 7 in 2028, right? No, the Polestar 7 will come before the Polestar 6. The reason is very simple, I want to go more quickly into the compact SUV segment, where there is a lot of volume and a lot of money. I love the Polestar 6, but I had to reprioritize it in terms of timing. So, the focus will be on higher volume vehicle rather than halo cars, right? We consider the Polestar 5 a halo car. So, I don't need two halo cars at the same time. Therefore, we will focus on the Polestar 5. Will the Polestar 5 only be built in China or will you add production elsewhere? It will be China production only. Will there be a second-generation Polestar 2 or will it get a new number? When would it come to market? There will be a Polestar 2 successor because it's an incredibly successful car with 170,000 units on the road, but I cannot say when it will come. Sign in to access your portfolio
Time of India
04-07-2025
- Automotive
- Time of India
Polestar to make new SUV in Europe from 2028
Polestar said on Thursday it would make its Polestar 7 SUV model at a Volvo Cars factory in Slovakia, as the EV maker shifts more production from China and tries to cut its exposure to heavy European and U.S. tariffs. Polestar said the two Swedish companies, both controlled by China's Geely and its owner Li Shufu, had signed a memorandum of understanding and the new model would launch in 2028. "Polestar is taking the next step in diversifying its contract manufacturing footprint by expanding it to Europe," the company said. Volvo's Kosice factory in Slovakia is scheduled to start production in 2026, with an expected annual capacity of 250,000 cars. Polestar, which has yet to make a profit, faces tariffs of 28.8% for the cars it brings into Europe and more than 100% for any it imports into the United States. The European Union imposed tariffs on Chinese-made EVs last year because of what it describes as unfair subsidies from the Chinese government. Beijing refutes this criticism. Tariffs have impacted Polestar more than most European automakers because the majority of its cars are produced in China, either by Volvo Cars or Geely. The automaker now produces some Polestar 3 SUVs in the United States at a Volvo Cars plant in South Carolina. Earlier this year, the company stopped taking new orders from U.S. customers for the Polestar 2, which is still made in China. The automaker will also export the Polestar 4 to the United States from a South Korean plant, where production is set to begin in the second half of the year. Earlier this year, Polestar said it would take longer to become profitable and delayed its expansion of sales to additional countries.
Reuters
03-07-2025
- Automotive
- Reuters
Polestar to make new SUV in Europe from 2028
STOCKHOLM, July 3 (Reuters) - Polestar said on Thursday it would make its Polestar 7 SUV model at a Volvo Cars ( opens new tab factory in Slovakia, as the EV maker shifts more production from China and tries to cut its exposure to heavy European and U.S. tariffs. Polestar said the two Swedish companies, both controlled by China's Geely ( and its owner Li Shufu, had signed a memorandum of understanding and the new model would launch in 2028. "Polestar is taking the next step in diversifying its contract manufacturing footprint by expanding it to Europe," the company said. Volvo's Kosice factory in Slovakia is scheduled to start production in 2026, with an expected annual capacity of 250,000 cars. Polestar, which has yet to make a profit, faces tariffs of 28.8% for the cars it brings into Europe and more than 100% for any it imports into the United States. The European Union imposed tariffs on Chinese-made EVs last year because of what it describes as unfair subsidies from the Chinese government. Beijing refutes this criticism. Tariffs have impacted Polestar more than most European automakers because the majority of its cars are produced in China, either by Volvo Cars or Geely. The automaker now produces some Polestar 3 SUVs in the United States at a Volvo Cars plant in South Carolina. Earlier this year, the company stopped taking new orders from U.S. customers for the Polestar 2, which is still made in China. The automaker will also export the Polestar 4 to the United States from a South Korean plant, where production is set to begin in the second half of the year. Earlier this year, Polestar said it would take longer to become profitable and delayed its expansion of sales to additional countries.
