Business31 March, 20261 min read
Polestar Consolidates Production in US; Volvo Converts $340 Million Debt to Equity
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Polestar 3 production consolidated in South Carolina, ending Chengdu output. Volvo converts over $300 million Polestar debt to equity to consolidate U.S. production.
Production Consolidation
Polestar and Volvo Cars announced that Charleston will become the sole production site for the Polestar 3. Volvo CEO Samuelsson said the move helps generate efficiencies for both companies. The South Carolina plant already produces the Volvo EX90, which shares the platform with the Polestar 3.
Debt-to-Equity Conversion
Volvo Cars agreed to convert approximately $340 million of Polestar debt into equity. The conversion will double Volvo's stake to 19.9%. Geely Holding will complete a similar $300 million conversion in Q2 2026.
US Market and Incentives
The US is a very important market for Volvo Cars to support growth ambitions. The consolidation is not a reaction to EU tariffs. The South Carolina facility has received $1.3 billion in investments over the past decade.
Platform Sharing and Future Models
The Polestar 3 shares the SPA2 platform with the Volvo EX90. The production line will also manufacture the Volvo XC60. A new hybrid model is planned before 2030.