By
Svetlana Soroka
April 18th, 2024
Zhejiang Geely Holding Group Co Ltd intends to construct a factory that will be used in the manufacturing of premium Polestar marque.
According to two unnamed sources, the electric vehicle (EV) factory that the Chinese auto-making group intends to build in the western city of Chongqing will have an annual manufacturing capacity of 30,000 premium EVs. So far, both Geely and Polestar have not spoken about the premium marque model. Another factory also in development in China will be used in making the Lotus marque sport-utility vehicles.
Manufacture Plans of Polestar in Cooperation with Geely
Hangzhou-based Geely, a renowned Chinese automaker, owns stable brands like Volvo and Lotus, nearly half of Proton and also 9.7% of Daimler AG. Founded in 1997, the Hangzhou-based company does work such as designing, development, production, sales and servicing of various automobiles.
Through Polestar, a newly registered wholly-owned company, the automaker builds Polestar 1 – low-volume hybrid performance car – in Chengdu, china’s western city and Polestar 2 volume sedans in Taizhou, the country’s eastern part. During China auto show held this year’s, the company said that in the near future it would commence production of its Precept sedan.
Before the year ends, Polestar aims to increase its number from 23 to 45 which it currently offers in nine countries and eventually provide bigger, sportier vehicles in various showrooms.
BMW and Tesla Expanding EV Production
The news comes just after Bayerische Motoren Werke AG (FWB: BMW) stated that it would compete more aggressively with Tesla Inc (NASDAQ: TSLA) in the pricey line of niche electric vehicles by offering electrified versions of those luxury vehicles.
Car manufacturer BMW is credited for producing praised engineering marvels like its electric i3 small car and i8 sports car. In addition, Harald Krüger, Chief Executive Officer of BMW, told journalists last month that the German automaker will electrify more popular mainstream models and brands including all crossover sport-utility vehicles. BMW also said that Leipzig plant would be a production site for high-voltage batteries modules of the BMW’s electrified vehicles.
By 2023, the German automaker would have 25 electrified vehicles – half of the number are full-electric models. More high-powered battery tech, on the other hand, has kept Tesla in front of the electric vehicle race. Tesla has been using software to make batteries work more efficient when designing battery-powered vehicles for over a decade.
Geely Unveils New EV Architectures to Boost Manufacturing
Chinese carmaker Geely unveiled in August a project dubbed Compact Modular Architecture (CMA), which will enable the company to develop, design and manufacture different compact cars at a lower cost with the similar mechanical layout. Alongside the CMA platform, Geely and Volvo plan to use the B-segment Modular Architecture (BMA), a platform for smaller cars, to quickly and cost-effectively design more EV vehicles.
Last month, Geely launched the Sustainable Experience Architecture (SEA) – which took four years and cost 18 billion yuan ($2.65 billion) to build – for the Lynk & CO Zero Concept that will support manufacturing of outpacing electric vehicles.