Africa Automotive News September-October digital issue 2019

and create the level of interest that we
require to get to the volume objectives
that we’ve got.”
Review
While launching a sedan in a crossovermad
world might seems counterintuitive,
Polestar executives point to the sales
success of Tesla’s Model 3 as proof of
demand for a high-performance, welldesigned
electric sedan.
Polestar’s choice to go with a sedan was
also strategic. Established automakers
such as Jaguar, Volkswagen and
Mercedes-Benz are already focused
on the electric crossover segment. The
Swedish newcomer would prefer to avoid
that knife fight for now.
“I’m very pleased to be launching a
fastback car which offers an alternative to
the Tesla Model 3, where there will be no
other alternative for the next 18 months,”
Goodman said. “Sometimes, it’s quite nice
to be not like everybody else.”
Goodman is confident Polestar has nailed
the timing, as EVs capture customer
imagination and charging infrastructure is
expanding. EVs are expected to account
for 57 percent of global passenger car
sales, or 56 million vehicles, by 2040,
according to Bloomberg New Energy
Finance.
“We have no legacy to worry about,”
Goodman said. “If I’m a big OEM, one of
the things I would have to wrestle with is,
‘How do I promote my electric vehicles
while at the same time doing 80 percent
of my volume with more traditional
engines?’ We are all-in on electrics, so
we can be very unequivocal in what we
say about the cars and how we believe in
them.”
At the same time, Polestar is itself part of
an old established automaker in Volvo,
which offers Polestar deep pockets and
resources — in addition to having entree
into the Chinese market through Geely.
“We can be in China, we can be in
Europe, we can be in the U.S. at the same
time,” Goodman said.
U.S. rollout
One thing Polestar doesn’t have is a
solution to global trade tensions. Those
could confound the upstart’s global
ambitions — especially its U.S. rollout.
The company plans to build its vehicles
in China, which is in a tit-for-tat tariff war
with the U.S. The Trump administration
has threatened to levy tariffs of up to 25
percent on an additional $300 billion
worth of goods imported from China.
Company executives said they’ve priced
their vehicles to factor in current U.S.
tariffs on China-made vehicles. But if
tariffs change, “We’ll have to reevaluate
everything,” Polestar USA chief Gregor
Hembrough.
Geographically diversifying production
would offer some insulation from a U.S.-
China trade war, but Goodman waved
away that prospect. “As soon as you start
doing that, you’re into double tooling,
and the costs are very high,” he said.
There have been about 2,000 preorders
for the Polestar 2 globally since
reservations opened in late February. The
company declined to say how many of
those reservations are from the U.S. but
noted early interest is coming from EVfriendly
California and the Northeast.
The U.S. marketing offensive, which
begins next month, will be more snipershot
than spray-and-pray. Don’t expect
a Polestar commercial during the Super
Bowl, Hembrough said. “This is not going
to be a brand for the masses,” he said.
Starting in July, Polestar will launch
“highly experiential type of activities,”
such as a roadshow where the public will
have an opportunity to interact with the
vehicle. Test drives will not be offered
initially.
The Polestar 2 is benchmarked against
the Tesla Model 3, but Hembrough
doesn’t expect to lure Tesla customers in
the near term. “Model 3 owners are only
12 to 14 months into their ownership,”
he said. “I don’t think they are going to
be defecting at this early stage.”
More likely poaches, Hembrough said,
will be owners of the BMW 3 series, Audi
A4 and Mercedes-Benz C class who are
curious about an electric powertrain.
September-October issue l 2019
Africa Automotive News l 2019 39