Volvo Cars, which has recently purchased Swedish race-car maker Polestar, seeks to be able to compete with Mercedes-AMG and BMW's M models. Volvo will be using this name for a bigger high-performance range. Under a cooperation agreement entered in 2013, Volvo has already started to sell Polestar-tuned versions of the V60 wagon and S60 sedan.
In a statement, CEO Hakan Samuelsson said that Volvo will utilize its full resources to develop Polestar further and for more Volvo owners to experience what Polestar has to offer. The automaker will offer sportier versions of its regular models, a move that is copied from Jaguar Land Rover, BMW and Mercedes-Benz.
The automaker also said that it has raised its estimate for Polestar sales from 750 units this year to about 1,500 units in the medium term. The monetary details of the deal weren’t revealed. The acquisition does not include the racing unit of Polestar as it remains to be controlled by racecar driver Christian Dahl, its owner and CEO.
This racing unit has been collaborating with Volvo. The U.S., the U.K. and Australia are the largest markets for Volvo’s Polestar sporty versions. Polestar, which has an exclusive cooperation deal with Volvo, makes use of performance-enhancing software and tunes cars to improve the mid-range engine performance by revising the gearbox and throttle response.
In motor sport, the relationship between Volvo and Polestar began in 1996. Volvo will absorb the current Polestar Performance employees as its own. Volvo has set a target of half a million cars this year. But by the end of the decade, it aims to increase its worldwide annual sales to 800,000 units.
In 2014, Volvo was able to sell 465,866 cars. Zhejiang Geely Holding Group Co. bought Volvo from Ford five years ago. Christian Dahl said that he is “extremely satisfied” with the development of the performance business with Volvo. He pointed out that his company is a “racing team” and that this represents an opportunity to focus on its core business, which is to “develop and race Volvo cars.”