9:24 am, May 12, 2023
Polestar is to axe 10 per cent of its workforce and has lowered its production forecast for the year.
The Swedish EV firm blamed a delay to the start of production of its ‘3’ model, as well as the automotive industry facing ‘a challenging environment’, according to Reuters.
Polestar said it would amount to about 300 jobs going and it would also freeze any hiring as well as adding the 500 jobs that were intended for this year, said Automotive News Europe.
Production estimates for 2023 have also been downgraded from 80,000 to between 60,000 and 70,000. It made 51,491 units in 2022.
Manufacturing the Polestar 3 was due to begin during the middle of this year but has now been pushed back to the first quarter of 2024.
Polestar laid the blame for the delay at the door of Volvo Cars – which makes its vehicles – needing to carry out more software development and tests, said Reuters.
Volvo, in turn, has delayed the start of manufacturing its EX90 electric SUV for the same reason.
In a statement, Volvo – which is majority-owned by Geely – said it now expected to begin making the vehicle during the first half of next year, reported Reuters.
Volvo has delayed the start of production of the EX90
The EX90 was unveiled last year, with Volvo saying production should start at the end of 2023, arriving in showrooms during the early part of next year.
However, a spokesman wouldn’t be drawn on when Volvo now expects the SUV to get to dealerships.
The news comes on the heels of fellow EV manufacturers Lucid and Fisker cutting their production forecasts as well.
Meanwhile, Lucid said in March that it would be axeing 18 per cent of its workforce, which amounts to approximately 1,300 employees.
Polestar UK boss Jonathan Goodman was interviewed by Car Dealer associate editor James Batchelor last August in which he outlined the manufacturer’s plans to more than double its UK footprint.
You can watch the video of the interview at the top of this article.
