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Volvo to boost investment in South Carolina, launch new hybrid model before 2030
Yahoo Finance· 2025-09-30 10:33
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Dive Brief: Volvo Cars is boosting its investment in South Carolina to build its XC60 mid-size SUV for the U.S. market starting in late 2026, the automaker announced in a press release Sept. 23. Currently, the XC60 is primarily produced in Sweden. Following U.S. production of the vehicle, the plant will also build a new, next-generation hybrid model for the ...
Volvo Cars plans further investment in US manufacturing plant
Yahoo Finance· 2025-09-24 09:52
Group 1 - Geely-owned Volvo Cars is continuing its investment in the Ridgeville manufacturing facility in South Carolina to maximize output in the coming years [1][2] - The company plans to introduce a new hybrid model for the US market at the Ridgeville plant before 2030, having already invested $1.3 billion over the past decade [2][3] - The Ridgeville plant currently has an installed capacity of 150,000 vehicles annually, producing the all-electric EX90 SUV and the Polestar 3, with plans to add the XC60 mid-size SUV to production by late 2026 [3][4] Group 2 - The XC60 has seen strong market uptake in the US, with sales exceeding 27,000 units in the first eight months of this year, a nearly 20% increase from the same period in 2024 [4][5] - Volvo Cars has experienced a downturn in global car sales for August 2025, with a 9% year-over-year decrease, selling 48,029 vehicles [5][6] - There has been a notable 28% drop in demand for fully electric vehicles, which now account for 20% of total sales volume [6]
Volvo Cars to produce new vehicle in US as tariffs pressure auto supply chains
New York Post· 2025-09-23 19:29
Volvo Cars on Tuesday announced plans to produce a new hybrid model in the US as its supply chain continues to feel the pressure from President Trump’s tariffs.The Swedish automaker is aiming to add a next-generation hybrid model to the production line at its Ridgeville, South Carolina plant near Charleston before 2030, the company said in a press release.“The Charleston plant is foundational to our strategic growth plan for the US,” Luis Rezende, president of Volvo Cars Americas, said in a statement Tuesda ...
Volvo stock jumps on expanded US production, new hybrid model to counter tariffs
Yahoo Finance· 2025-09-23 16:04
Sweden’s Volvo Cars (VOLCAR-B.ST) is expanding production at its US plant in a move to localize production, deflect tariffs, and build more cars that appeal to buyers in one of its biggest markets. Volvo, wholly owned by China’s Geely, announced on Tuesday that it would bring a fourth vehicle to its production facility located in Ridgeville, S.C. — a next-generation hybrid model designed to meet the “specific demands” of the US market. Volvo offered no details of the new vehicle, but others have surmised ...
Polestar(PSNY) - 2025 Q2 - Earnings Call Transcript
2025-09-03 13:02
Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [12][10] - Revenue increased by 56% to $1.4 billion, driven by higher sales volume and a growing share of higher-priced models [15][10] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [16][10] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [17][10] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of retail sales volume [12] - Carbon credit sales amounted to $90 million, contributing positively to profitability [15][16] - The sales mix shifted towards more Polestar 2 cars, impacting the overall gross margin negatively [25][26] Market Data and Key Metrics Changes - Strong performance noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [13][14] - Europe is now the main regional market, with 77% of sales coming from this region [49] Company Strategy and Development Direction - The company is focused on an active selling model, enhancing operational efficiency, and improving cash position [9][10] - Plans to launch Polestar 5, which is expected to shape the brand's identity and compete with legacy performance brands [8][10] - The company aims to manufacture Polestar 7 in Slovakia, marking a significant milestone in European manufacturing [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [12][19] - Despite challenges, the company expects to continue growing year-on-year in line with set growth targets [13][21] - The demand for BEVs is still growing, particularly in Europe, although there are shifts towards lower-priced models [24] Other Important Information - The company raised $200 million in new equity and secured approximately $1 billion in new loan facilities [19][20] - Cash position at the end of June was $719 million, with a focus on improving working capital management [20][39] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, especially in Europe, but there is a trend towards lower-priced models [24] - The margin decline was attributed to a negative sales mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes [31] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [32][34] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and discussed ongoing improvements in working capital management [39][40] Question: U.S. market strategy post-EV tax credit - Management highlighted that the U.S. market represents about 8% of sales and emphasized the need to balance volume and profitability [49][50]
Polestar(PSNY) - 2025 Q2 - Earnings Call Transcript
2025-09-03 13:00
Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [11][12] - Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and a growing share of higher-priced models [13] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [14][15] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [15] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of total sales volume [11] - Carbon credit sales amounted to $90 million, contributing positively to profitability [13][15] - The company has implemented an active selling model, increasing the number of sales points by 40% to 169, excluding China [9] Market Data and Key Metrics Changes - Strong performance noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market remains challenging due to tariffs and policy changes [12] - Europe is now the main regional market, with Polestar present in 17 countries [12] - The U.S. represents about 9% of retail sales, with a focus on balancing volume and profitability [50] Company Strategy and Development Direction - The company is committed to electric mobility, emphasizing the transition to emission-free vehicles [5] - Strategic goals include increasing sales through commercial operations transformation, enhancing operating efficiency, and improving cash position [8] - The launch of Polestar 5 is seen as a significant milestone, showcasing the brand's commitment to performance and sustainability [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [11] - Despite challenges, the company expects to continue growing year on year in line with set growth targets [12] - The company is focused on optimizing product and channel mix while continuing cost reduction efforts [17] Other Important Information - The company raised $200 million in new equity and secured approximately $1 billion in new loan facilities [18] - Cash position at the end of June was $719 million, with ongoing efforts to improve working capital management [19] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, particularly in Europe, but there are shifts towards lower-priced models [24] - The margin decline was attributed to a negative car line sale mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes due to industry shifts [30] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [31][32] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and an average cash burn of around $140 million for the first half of 2025 [39] Question: U.S. market strategy post-EV tax credit - Management highlighted that 77% of sales are in Europe, with the U.S. being important but requiring a balance between volume and profitability [49][50]
Polestar(PSNY) - 2025 Q2 - Earnings Call Transcript
2025-09-03 13:00
Financial Data and Key Metrics Changes - Retail sales volume grew by 51% to over 30,000 cars, exceeding the growth target of 30% to 35% for 2025 to 2027 [11][12] - Revenue increased by 56% to $1.4 billion in the first half of 2025, driven by higher sales volume and a growing share of higher-priced models [13][14] - Adjusted gross margin improved to a positive 1.4% from a negative 2.6% a year ago, despite a negative gross margin of 49% due to an impairment expense of $739 million [14][15] - Adjusted EBITDA loss narrowed by 30% to $302 million, reflecting improvements in top-line performance and cost discipline [15] Business Line Data and Key Metrics Changes - Polestar 3 and Polestar 4 accounted for over 50% of total sales volume [11] - Carbon credit sales amounted to $90 million, contributing positively to profitability [13][15] - The company has grown its number of sales points, excluding China, by 40% to 169 [9] Market Data and Key Metrics Changes - Strong performances were noted in Europe, particularly in the UK, Germany, Belgium, and the Nordic region, while the U.S. market faced challenges due to tariffs and policy changes [12] - Europe is now the main regional market, with Polestar present in 17 countries [12] Company Strategy and Development Direction - The company is focused on increasing sales through a transformation of commercial operations, enhancing operating efficiency, and improving cash position [8][9] - The launch of Polestar 5 is anticipated to showcase the brand's capabilities and is set for September 8th at IIA in Munich [6][7] - The company aims to manufacture Polestar 7 in Slovakia, targeting the fast-growing compact SUV segment expected to launch in 2028 [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant external headwinds, including tariffs and pricing pressure, impacting profitability [11][14] - Despite challenges, the company expects to continue growing year on year in line with set growth targets [12] - The company will not issue financial guidance at this time but reiterates the target compound annual retail sale volume growth of 30% to 35% over 2025 to 2027 [21] Other Important Information - The company raised $200 million in new equity and secured about $1 billion in new loan facilities [18] - Cash position at the end of June was $719 million, with a focus on improving working capital management [19][38] Q&A Session Summary Question: Demand environment quarter to date and margin decline factors - Management noted that BEV markets are still growing, particularly in Europe, but there are shifts towards lower-priced models [24] - The margin decline was attributed to a negative car line sale mix and increased tariffs impacting cost of goods sold [25][26] Question: Potential reimbursements to contract manufacturing partners - Management stated that they have long-term agreements with partners and are working through any changes without providing specific figures [30] Question: Establishing brand independence from Geely and Volvo - Management emphasized that Polestar has established a strong brand identity and is differentiating itself while utilizing Volvo's service network [31][32] Question: Total liquidity and cash burn expectations - Management confirmed a cash position of $719 million and a cash burn of around $140 million for the first half of 2025, with expectations for improvement in the second half [37][39] Question: U.S. market strategy post-EV tax credit - Management highlighted that 77% of sales are in Europe, with the U.S. representing 8%, and emphasized the need to balance volume and profitability [49][50] Question: Path to EBITDA break-even - Management is assessing external headwinds and working on a new business plan, with no specific guidance provided at this time [54]
6年亏损380亿、月销跌至个位数,极星汽车保得住中国市场吗?
Xin Jing Bao· 2025-08-11 04:33
Core Viewpoint - Polestar, a Nordic luxury electric vehicle brand, is facing significant challenges in the Chinese market, with sales plummeting to just 69 vehicles in the first half of 2025, raising concerns about its future operations in the region [1][6]. Sales Performance - In June 2025, Polestar sold only 6 vehicles, following a dismal performance with just 1 sale in March and no sales in April and May [1] - Cumulatively, Polestar has reported a net loss exceeding $5.3 billion (approximately 38 billion RMB) from 2019 to 2024, with losses projected to increase from $470 million in 2022 to $2.05 billion in 2024 [1] Financial Situation - As of the end of 2024, Polestar's net assets were negative $3.329 billion, with total liabilities reaching $7.383 billion [2] - Li Shufu, through his company, injected $200 million into Polestar, raising his ownership stake to 66% and providing a temporary boost to the company's financial situation [2] Strategic Adjustments - Polestar has undergone frequent changes in product positioning and pricing strategies, which have confused consumers and affected brand perception [4][5] - The company has shifted its focus to a "light asset" transformation, planning to reduce its dealer network and concentrate on direct sales and online models [6] Market Positioning - Polestar's initial high-end positioning with the Polestar 1 was followed by a rapid price reduction for the Polestar 2, leading to a perception of instability in pricing [4] - The introduction of the Polestar 3 and Polestar 4 aimed to reclaim market share but has not resulted in significant sales, with the latter model struggling to sell even 200 units in its first six months [4] Management and Operational Changes - The company has seen instability in its management team, with seven different CEOs in the Chinese market, which has further impacted operational consistency [5] - Despite rumors of exiting the Chinese market, Polestar has stated that its operations are running normally, although it has significantly reduced its workforce from 320 to 86 employees [6]
美国汽车业:关税反扑- 底特律能否保住盈利(2025 年第二季度预览)U.S. Autos_ The tariff strikes back - can Detroit protect its earnings_ (Q2_25 Preview)
2025-07-25 07:15
Summary of U.S. Autos & Auto Parts Conference Call Industry Overview - The focus is on the U.S. automotive industry, particularly the impact of tariffs on earnings and production for major Original Equipment Manufacturers (OEMs) such as Ford, GM, and Stellantis [2][17][19]. Key Points and Arguments 1. **Tariff Impact on Earnings**: The upcoming Q2 results will prominently display the costs associated with tariffs, with estimates suggesting an EBIT impact ranging from €1.8 billion to $5 billion for OEMs [3][19]. 2. **Demand Pull-Forward**: There has been a temporary boost in sales due to tariff-induced demand pull-forward in April and May, but this is not expected to be sustainable [4][25]. 3. **Production Cuts**: OEMs are expected to cut production in H2 2025, which may lead to disappointing sales and earnings as the market softens [2][6][19]. 4. **Consumer Environment**: A weakening consumer environment, driven by tariff-induced inflation and a shift towards lower-paying jobs, is likely to reduce discretionary spending on automobiles [6][19]. 5. **Electric Vehicle (EV) Market**: The demand for Battery Electric Vehicles (BEVs) has improved, but policy headwinds and the removal of tax credits may create challenges for OEMs, particularly the Detroit Three [5][19]. 6. **OEM Strategies**: Ford, GM, and Stellantis are increasing U.S. content and working with suppliers to comply with USMCA, but these strategies have not yet effectively mitigated costs [19][24]. 7. **Stellantis Positioning**: Stellantis is seen as better positioned among the Detroit Three due to its international operations, which reduce its tariff exposure [11][18]. 8. **Rivian and Polestar Challenges**: Rivian's tariff impact is delayed due to inventory management, while Polestar faces challenges from geopolitical tensions affecting its global production strategy [12][24]. Important but Overlooked Content 1. **Market Share Stability**: Despite the challenges, market share for GM and Stellantis has remained stable at approximately 17% and 7%, respectively, with Ford increasing its share to 14% [25]. 2. **Pricing Trends**: There has been no significant change in pricing or discounts across the sector, indicating that OEMs have absorbed tariff costs without passing them onto consumers [19][25]. 3. **Long-term Outlook**: The long-term growth plans for companies like Polestar may need to be reassessed due to the impact of U.S. tariffs and trade tensions [24]. Financial Metrics - **Ford**: Estimated gross EBIT impact of $2.5 billion for the remainder of 2025, with a total annual estimate of $3.75 billion [19]. - **GM**: Estimated EBIT drag from tariffs is between $4 billion and $5 billion, with a structural cost shift closer to $7 billion to $8 billion [19]. - **Stellantis**: Expected to manage a net tariff impact in the U.S. of approximately €1 billion to €1.5 billion [18]. This summary encapsulates the critical insights from the conference call regarding the U.S. automotive industry's current state and future outlook, particularly in light of tariff impacts and changing consumer dynamics.
极星汽车4年亏337亿深陷资不抵债 首季国内仅售63辆李书福输血14亿
Chang Jiang Shang Bao· 2025-07-01 00:08
Core Insights - Polestar Automotive, backed by Volvo and Geely, is struggling with poor sales in the Chinese market and increasing losses [1][11] - The company has announced a recall of 2 units of the Polestar 2 electric vehicle due to safety concerns related to the braking system [2][3] - Polestar's financial situation is dire, with a cumulative net loss of $47.05 billion over four years and a negative net asset value of $33.29 billion [12] Sales Performance - Polestar's sales in China from 2021 to 2024 were 2,048 units, 1,717 units, 1,100 units, and 1,726 units respectively [9] - In Q1 2025, Polestar's sales in China plummeted to just 63 units, with monthly sales of 56, 6, and 1 [10] - Global sales figures from 2020 to 2023 were 10,200 units, 29,000 units, 51,500 units, and 54,600 units, with a decline to 44,900 units in 2024, a 15% year-over-year decrease [8][9] Financial Overview - Polestar's revenue from 2021 to 2024 was $1.337 billion, $2.462 billion, $2.368 billion, and $2.034 billion, with net losses of $1.007 billion, $466 million, $1.182 billion, and $2.05 billion respectively [11] - As of the end of 2024, Polestar's total assets were $4.054 billion, total liabilities were $7.383 billion, resulting in a negative net asset value of $3.329 billion [12] Investment and Ownership - Recently, Polestar secured a $200 million equity investment from existing investor PSD Investment Limited, controlled by Geely's founder Li Shufu [12][13] - The investment will be executed through a private placement of 190 million A-class American Depositary Shares (ADS) at $1.05 each, increasing PSD Investment's stake in Polestar to 44% [13] - Post-transaction, Li Shufu will hold a combined 66% stake in Polestar, while Volvo's stake will decrease from 18% to 16% [13]