Volvo Unveils a Direct Challenge to Tesla

Volvo Unveils a Direct Challenge to Tesla
Oct. 17, 2017 10:54 a.m. ET

 

Volvo and its Chinese owner, Zhejiang Geely Holding Group Co. unveiled their first high-performance, low-volume electric-car model proving their dedication to becoming leaders in electrification. Polestar, the premium electric-vehicle company owned by Volvo, will build its new plant in Chengdu. The Polestar 1, a hybrid coupe, will be released for sale during the first half of 2019, and the Polestar 2, a pure-electric premium vehicle, will be released for sale later that same year. Additionally, Polestar will experiment in a new payment method by requiring customers to sign up for 2-3 year subscription plans.

            With the Chinese government now ordering foreign and domestic automakers to begin production of electrical vehicles by 2019 as they prepare to ban gasoline cars, Volvo and Geely are heading to the future of the market. Polestar is in for a hard competition against Tesla, the leading maker of electric premium vehicles, and will later have to face Maserati, Jaguar, Bentley, and the big German brands (Mercedes-Benz, BMW AG, Audi AG, and Porsche) as they plan to launch their own EVs and hybrid cars. However, with Geely as a stable and growing brand, the odds are looking well in their favor.

            With increasing global pollution, society is looking for alternatives to everyday activities to minimize the effect on the planet. Electric cars aim to do just that. Throughout research and analysis must be obtained to ensure the product is what it is marketed as: eco-friendly. Some say the demand for these cars is very low, but other believe people are ready to make the transition. There are debates over how well EVs will pass through the market introduction stage and into market growth and maturity stages.

Wall Street Journal