Polestar will cut 15% of its payroll worldwide. The Swedish manufacturer accuses “ the weakness of its market share » and the desire to reduce expenses.
Polestar cuts 15% of its payroll
All is not rosy for manufacturers who focus 100% on electric. Indeed, the market is particularly competitive and the smaller brands sometimes have difficulty doing well. Not everyone is called Tesla or BYD and it is not so easy to generate margins. Polestar, Volvo’s sister brand, has just announced measures to try to reduce its expenses.
Price war impacts Tesla margins, worries investors
The company has declared that around 450 employees would be affected by a wave of layoffs. This represents approximately 15% of the brand’s total workforce worldwide. Polestar talks about “ difficult market conditions » to justify this radical decision. The company is looking for a way to generate more margins and thus give itself a breath of fresh air in a very competitive context.
First consequences of the price war?
Despite the support of the Chinese giant Geely, Polestar remains a small structure and must be considered as a start-up. And 2023 was a particularly difficult year for the company with “ only » 54,600 units delivered. This is too little to hope to change dimension and it is above all below the objectives set at the start of last year. Polestar did not meet with the expected success with consumers.
Inflation, supply chain problems and the price war launched by Tesla are not helping the Swedish company to get by. Only the most profitable will be able to hold on. Carlos Tavares has rightly warned about this. He predicts a “ bain de sang “. The boss of Stellantis believes that it is a “ race to the bottom “. According to him, manufacturers must absolutely remain profitable to invest in new technologies.
Facing Tesla, Renault and Volkswagen enter the price war with their electric cars
A young brand like Polestar does not have the same assets as large historical groups such as Volkswagen, BMW or Renault. Even less with a small range of models. Polestar is aiming for profitability in 2025. For the future, a spokesperson specifies that “ Polestar 3 production to begin in China and South Carolina later this year, followed by Polestar 4 in South Korea ».
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