Volvo and its parent, Zhejiang Geely Holding Group, are initially investing about $752 million in the stand-alone electrified vehicle brand, mostly for a China assembly plant. Only 500 Polestar 1 coupes will be produced annually and customers can preorder the vehicle starting Tuesday.
Volvo Cars will double down its bet on its upcoming U.S. factory by adding production of its next-generation XC90 crossover and boosting investment to a total of $1.1 billion. The XC90 -- currently built in Torslanda, Sweden -- is the second vehicle planned for production at the plant in South Carolina.
Volvo breaks new ground with the XC40, its first model in the fast-growing premium compact crossover segment that will challenge the Lexus NX, BMW X3 and Audi Q3. It's Volvo's first model with inductive charging for mobile phones and the first to offer a car-sharing option.