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Chinese-owned Volvo Cars (VOLCAR-B.STO)* and Polestar (Nasdaq: PSNY) said today that there are plans to consolidate the production of Polestar 3 cars at Volvo Cars’ US-based car plant in Ridgeville outside Charleston in South Carolina. The Polestar 3 is currently also produced in Chengdu, China.
“The move to consolidate global Polestar 3 production in Charleston help generate efficiencies for both companies, whilst also underscoring our confidence in the plant and the role it plays in our manufacturing footprint,’ said Håkan Samuelsson, chief executive of Volvo Cars. ‘The US is a very important market for Volvo Cars, both to support our growth ambitions as well as a strategic production site to meet regional and export demands.”**
Volvo Cars has agreed to convert approximately $274 million of its outstanding shareholder loan into Polestar’s equity. After the completion of the previously announced approximate $300 million debt-to-equity conversion by Geely Sweden Holdings AB, Volvo Cars is expected to carry out a second debt-to-equity conversion later during the second quarter, totaling ~$65 million. In doing so, Volvo Cars’ ownership in Polestar will remain at approximately 19.9%. The conversion price will be set at 95% of the 30-day volume-weighted average price in Polestar shares up to 27 March 2026. As the debt-to-equity conversion announced on 19 December 2025 by Geely Sweden Holdings AB, which will have a dilutive effect on Volvo Cars’ shareholding in Polestar, has not yet been completed, Volvo Cars intends to carry out a second, smaller conversion later in the second quarter, subject to agreed deadlines and necessary regulatory approvals.***
Volvo’s US manufacturing facility is already a global production hub for the fully electric Volvo EX90 SUV. The EX90 is built on Volvo Cars’ SPA2 architecture, as is the Polestar 3. Apart from building Polestar 3 cars in the US, Volvo Cars previously announced that it will introduce its best-selling XC60 mid-size SUV to the South Carolina production line as well.
“Following the XC60, Volvo Cars also plans to add a new, next-generation hybrid model to the production line of the plant in Ridgeville outside Charleston, South Carolina before 2030. This new model is designed to meet the specific demands of the US market and reinforces Volvo’s long-term commitment to manufacturing in the country,” Volvo Cars said in a news release.
Michael Lohscheller, Polestar CEO, said, “We are grateful for the continued support from Volvo Cars in helping us to strengthen our balance sheet and reinforce our liquidity profile. Our strong operational collaboration with Volvo Cars continues through manufacturing, our commercial operations and offering our customers access to one of the most extensive service networks in the industry.”
*AutoInformed on
**Volvo Cars is a subsidiary of Geely Holding (GEELY.UL), which owns ~78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers. During 2025, Volvo Cars on average had 42,600 full-time employees and sold more than 710,000 cars. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, which is closing, Daqing and Taizhou (China). The company also has R&D and design centers in Gothenburg and Shanghai (China). – AutoCrat.
***About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand headquartered in Gothenburg, Sweden. Polestar vehicles are available in 28 markets globally across North America, Europe and Asia Pacific. Polestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned models include the Polestar 7 compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Volvo Cars to Combine Polestar 3 Production in U.S.
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Chinese-owned Volvo Cars (VOLCAR-B.STO)* and Polestar (Nasdaq: PSNY) said today that there are plans to consolidate the production of Polestar 3 cars at Volvo Cars’ US-based car plant in Ridgeville outside Charleston in South Carolina. The Polestar 3 is currently also produced in Chengdu, China.
“The move to consolidate global Polestar 3 production in Charleston help generate efficiencies for both companies, whilst also underscoring our confidence in the plant and the role it plays in our manufacturing footprint,’ said Håkan Samuelsson, chief executive of Volvo Cars. ‘The US is a very important market for Volvo Cars, both to support our growth ambitions as well as a strategic production site to meet regional and export demands.”**
Volvo Cars has agreed to convert approximately $274 million of its outstanding shareholder loan into Polestar’s equity. After the completion of the previously announced approximate $300 million debt-to-equity conversion by Geely Sweden Holdings AB, Volvo Cars is expected to carry out a second debt-to-equity conversion later during the second quarter, totaling ~$65 million. In doing so, Volvo Cars’ ownership in Polestar will remain at approximately 19.9%. The conversion price will be set at 95% of the 30-day volume-weighted average price in Polestar shares up to 27 March 2026. As the debt-to-equity conversion announced on 19 December 2025 by Geely Sweden Holdings AB, which will have a dilutive effect on Volvo Cars’ shareholding in Polestar, has not yet been completed, Volvo Cars intends to carry out a second, smaller conversion later in the second quarter, subject to agreed deadlines and necessary regulatory approvals.***
Volvo’s US manufacturing facility is already a global production hub for the fully electric Volvo EX90 SUV. The EX90 is built on Volvo Cars’ SPA2 architecture, as is the Polestar 3. Apart from building Polestar 3 cars in the US, Volvo Cars previously announced that it will introduce its best-selling XC60 mid-size SUV to the South Carolina production line as well.
“Following the XC60, Volvo Cars also plans to add a new, next-generation hybrid model to the production line of the plant in Ridgeville outside Charleston, South Carolina before 2030. This new model is designed to meet the specific demands of the US market and reinforces Volvo’s long-term commitment to manufacturing in the country,” Volvo Cars said in a news release.
Michael Lohscheller, Polestar CEO, said, “We are grateful for the continued support from Volvo Cars in helping us to strengthen our balance sheet and reinforce our liquidity profile. Our strong operational collaboration with Volvo Cars continues through manufacturing, our commercial operations and offering our customers access to one of the most extensive service networks in the industry.”
*AutoInformed on
**Volvo Cars is a subsidiary of Geely Holding (GEELY.UL), which owns ~78.7% of the company’s outstanding shares. Geely Holding, a Chinese multinational enterprise, bought Volvo from Ford Motor in 2010 after years of cultural clashes between American Ford and Swedish Volvo employees and senior managers. During 2025, Volvo Cars on average had 42,600 full-time employees and sold more than 710,000 cars. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, which is closing, Daqing and Taizhou (China). The company also has R&D and design centers in Gothenburg and Shanghai (China). – AutoCrat.
***About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand headquartered in Gothenburg, Sweden. Polestar vehicles are available in 28 markets globally across North America, Europe and Asia Pacific. Polestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned models include the Polestar 7 compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.