Polestar, the electric vehicle company owned by Volvo, has begun manufacturing its Polestar 3 SUV in South Carolina. This new production site aims to cater to both American and European markets.
The decision to shift production from Chengdu, China to the US is strategic, as it allows Polestar to avoid the significant tariffs imposed on imported EVs, thus reducing overall costs for their customers.
Polestar CEO Thomas Ingenlath emphasized the importance of this move, highlighting that producing the Polestar 3 in the US will not only provide American consumers with an EV made domestically but also strengthen the company’s position in Europe through exports. This dual-market approach is expected to enhance the company’s global footprint and operational efficiency.
Earlier this year, the Biden administration significantly increased tariffs on Chinese-made electric vehicles as part of a broader strategy to protect American manufacturers. This policy change was a key factor influencing Polestar’s decision to relocate its production.
The elevated tariffs were intended to encourage more domestic manufacturing and reduce reliance on foreign EV imports.
Looking ahead, Polestar plans to manufacture its next model, the Polestar 4, at a facility in South Korea, with production set to begin in mid-2025. This expansion reflects the company’s broader strategy to diversify production locations and meet growing global demand for electric vehicles.
