Volvo & Polestar delay production start for new EVs
The Volvo EX90 and Polestar 3 electric models will go into production later than planned. Software-related issues with the EV platform the two companies use are causing a delay.
According to Volvo Cars, production of the EX90 will not kick off until the first half of 2024 due to the need for “additional time for software development and testing”. The manufacturer did not give any additional details in the very short press statement. Production of the Volvo EX90 was to start this year.
Polestar has also confirmed the software-related delay “of the new all-electric platform shared by Volvo Cars” for the Polestar 3. Production of the latter will not start before the “first quarter of 2024”, but the production of the Polestar 4 will kick off as planned at the end of 2023.
Polestar also reduced its previous sales target for the full year 2023 from 80,000 vehicles to “60,000 to 70,000” vehicles. The brand delivered 12,076 electric cars in the first quarter, a new record and a 26 per cent increase over the same period last year.
Moreover, Polestar is imposing a global hiring freeze to reduce costs and is laying off ten per cent of its workforce.
“We are taking necessary steps to strengthen Polestar in the near-term”, says Polestar CEO Thomas Ingenlath. “While production of Polestar 3 will now start in the first quarter of 2024, the successful launch of Polestar 4 last month means that we add two strong offers in the attractive electric SUV market in 2024. I am confident that we will deliver on our growth ambitions and path towards profitability.”