Volvo And Polestar Confirm Delay Of New Electric Crossovers

Polestar and Volvo, owned by China's Geely, have confirmed they are delaying the launch of their next all-electric, three-row crossovers, the Polestar 3 and EX90.

Automotive News has confirmed the Polestar 3 will now begin production in the first quarter of next year due to ongoing software issues associated with the vehicle's platform.

This is the second time the Polestar 3 has seen a production delay. Production was initially scheduled to begin this August. As for the EX90, it, too, is suffering from platform development issues, which should not come as a surprise because it shares its platform with the Polestar. Production was initially set to begin in December, but Volvo has pushed this back to early 2024. Both EV crossovers will be built in South Carolina.

Polestar's 2023 production output has also decreased to 60,000 from the originally planned 80,000. "Given the tougher economic climate, it is difficult for us to compensate for the absence of the Polestar 3 volumes with incremental Polestar 2 volume, "Polestar CFO Johan Malmqvist said on an earnings call this week. "That, coupled with high market uncertainties, led us to call down the volumes,"

CEO Thomas Ingenlath further pointed out this production adjustment will benefit the Polestar 2 by protecting its profit margin. "We are intent not to push cars into the market for any price just to achieve a volume that we once announced," he explained. "Lowering sales estimates "gives us the opportunity to maintain the right balance between the volume that we achieve and what we achieve in terms of margins and price stability with our products."