Polestar taps Volvo dealerships, reduces reliance on online sales to return to growth

Automotive News
02-28
Polestar Spaces are the EV makers flagship stores. The are typically located in city centers such as downtown Munich or this one in Antwerp, Belgium.

MUNICH -- Polestar plans to rely on Volvo’s dealer network as the Geely-owned EV maker pivots toward traditional car dealerships in a bid to achieve its growth target.

Polestar will turn away from purely digital sales effective March 1, CEO Michael Lohscheller told Automotive News Europe sister publication Automobilwoche at a conference here on Feb. 26.

“Our goals of growing by 30 to 35 percent annually from 2024 to 2027 cannot be achieved with online sales alone,” Lohscheller said.

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Previously, Polestar relied heavily on its “Polestar Spaces” in key markets as well as support from Volvo dealerships. At both locations, potential customers could gather information but then were asked to order their car online.

Under the new sales model, partners will be able to actively sell Polestar vehicles at 17 locations in Germany, up from nine. This represents a “back to the roots” move that will rely heavily on the Volvo network, Lohscheller said.

Several Polestar models are underpinned by Volvo architectures. In addition, Volvo service centers can work on Polestar’s EVs.

Volvo said last February it would stop funding Polestar and would transfer responsibility for the brand to China’s Geely, which is also Volvo’s majority shareholder.

Lohscheller, who started his new role as Polestar CEO last October, had already announced a review of the sales strategy to move “from showing to actively selling cars” after deliveries fell below expectations.

In 2024, Polestar sold 44,851 vehicles worldwide, down 15 percent on 2023.

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