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Polestar will make new SUVs in Europe starting 2028

Polestar announced on Thursday that it will produce its Polestar SUV model in a Volvo Cars plant in Slovakia. The EV maker is shifting more production out of China to reduce its exposure to high European and U.S. Tariffs.

Polestar announced that the two Swedish firms, both controlled and owned by China's Geely, and Li Shufu its owner, had signed an agreement and the new model will be launched in 2028.

The company stated that it is expanding its footprint in Europe to diversify its contract manufacturing business.

Volvo's Kosice plant in Slovakia will begin production in 2026 with a capacity of 250.000 cars per year.

Polestar has not yet made a profit and faces tariffs on cars imported into Europe of 28,8%, as well as more than 100% on those imported into the United States.

Last year, the European Union imposed tariffs against EVs made in China because it viewed them as unfairly subsidised by the Chinese government. Beijing rejects these criticisms.

Polestar has been hit by tariffs more than other European automakers, because most of its cars are manufactured in China either by Volvo Cars and Geely.

Volvo Cars' plant in South Carolina produces some Polestar 3 vehicles in the United States.

In early this year, the company ceased to accept new orders for the Polestar 2 which was still being made in China.

Polestar 4 will be exported to the United States by the automaker from a South Korean factory, where production should begin in the second quarter of this year.

Polestar announced earlier this year that it would take more time to be profitable, and therefore delayed the expansion of its sales into additional countries.

(source: Reuters)