POLESTAR has clarified its financial position following a recent report suggesting $A900m in funds from parent company Geely were offered as a lifeline.
Speaking at the launch of the MY26 Polestar 2 in Melbourne this week, Polestar Australia managing director Scott Maynard told GoAuto the sum was offered as an investment in the company’s future, and will be used to support ongoing business operations, as well as further engineering, research and development.
“Any brand that starts from scratch and takes on a global footprint would not be expected to make money in its first five years, neither should ours, and neither will ours,” he said.
“I think our expectations on profitability and returns need to be realistic, and I think that’s one of the changes that have been implemented by Michael Lohscheller (Polestar’s new CEO) in statements to the market and how that should be set up.
“Of course, that has created some changes that need to be responded to, and I think we (Polestar) have responded to it well.
“That investment made by Geely is just that, an investment. It’s not a lifeline but rather finance pushed into the Polestar brand.
“There has been debt that has been turned into equity, and that investment has been secured by the brand, not to ensure its survival, but rather to give it cash flow to continue growing, to invest in R&D, and to invest in all of the things that are required to make the company grow.
While Mr Maynard’s comments suggest part of the $A900m Geely loan would be used to bolster research and development for the brand, it is noted that Polestar recently closed its final UK R&D facility, taking with it 130 full-time jobs.
Mr Maynard said that particular closure was part of a planned strategy related solely to development of the forthcoming Polestar 5, and that European research and development would continue to remain a part of the brand’s evolution.
“That (closure of the UK R&D facility) really does need to be held in context,” he stated.
“The R&D team that was assembled in the UK were assembled strictly for one purpose only, and that was the very special project of Polestar 5.
“The Polestar 5 sits on a platform all of its own. It’s got in-house developed motors, and it’s completely unique to anything that’s been done before by Polestar – and it is not a platform that will find its way into any other car in the range.
“With that work done, and the car now in production, there’s simply not a need for that (UK) facility, and so by necessity, that facility has been closed out.
When pressed as to whether ongoing research and development of Polestar models would continue in Europe or be carried out by Geely in China, Mr Maynard told GoAuto that Sweden will remain as part of what he described as an expanded global footprint.
“There is a really strong R&D team based in Sweden that will run (that portion of the business) for Europe,” he clarified.
“We also saw some of the work done on our Polestar 5 here in Australia … so we’ll still draw engineering resources from across the world.
“We’ve got an expanded manufacturing footprint that now sees us building cars in Busan in South Korea, and our Polestar 7 will be built in Europe, so that will come with the facility to have engineering and R&D resources in those spots.
“And we’ll continue to draw on the R&D might of the Geely group and some of the platform development we have there – but those cars will still be fine-tuned and finessed in Sweden.
Mr Maynard said that he “did not have visibility” on when Polestar was expected to turn a profit, both he and head office were pleased with the brand’s performance in the Australian market.
“Among a 27-market network, Australia sits inside the top 10,” he stated.
“Australia is punching above its weight in comparison to most manufacturers … so, we’re in a really good spot with our global partners – they like us.
Visit GoAuto again soon to read our Australian launch review of the 2026 Polestar 2 range.