Polestar, the Swedish electric car brand, is unlikely to produce its planned model 7 in Germany, according to Polestar CEO Michael Lohscheller, in an interview with the Welt (Thursday edition). “Germany is unfortunately not exactly the cheapest location for car production” Lohscheller said. “We would be delighted if a production site decision could be made in Germany. But we also know how the current framework conditions are.” The decision on a European production site for the Polestar 7 is expected to be announced in about three months.
Polestar currently has its cars produced by its parent company Geely in China, by its sister company Volvo in the US, and in a Renault plant in South Korea. Lohscheller, who was previously the head of the German brand Opel, believes the brand is well-prepared for potential trade conflicts. “We’re taking a close look at the supply chains and trying to set ourselves up independently of tariffs” he said.
The cars from China will also be sold in the UK, Norway, and Switzerland, where the EU’s trade compensation tariffs for Chinese electric cars do not apply. The Polestar 3, on the other hand, is produced in the Volvo plant in the US and will be delivered to Europe at a lower tariff. The South Korean factory is also helpful as a base for exports to North America, as the country has a free trade agreement with the US.