Polestar cuts 2022 sales forecast as China blocks supplies

Polestar cuts 2022 delivery forecast amid China lockdown

Polestar has accelerated the introduction of a second shift at its factory in Luqiao, China, and expects to recover some lost production this year.

On Thursday, Swedish electric vehicle maker Polestar cut its 2022 delivery forecast from 15,000 units to 50,000 vehicles, blaming the hit on COVID-19 lockdowns in China.

“The reduction for 2022 is 100% attributable to lockdowns in China,” the Volvo Cars subsidiary said in a statement.

“We would have comfortably reached our goal of delivering 65,000 cars this year without the lockdowns,” a Polestar source said. Automotive News Europe.

China’s COVID-19 lockdowns have caused supply chain disruptions for semiconductors and components widely used in electric vehicles, hurting companies’ ability to produce them.

Polestar said that with the help of its partners, Volvo and Geely Automobile, it continues to manage supply chain challenges as it did in 2021 when it delivered around 29,000 vehicles.

Polestar has accelerated the introduction of a second shift at its factory in Luqiao, China, and expects to recover some lost production this year. The company added that it was confident of meeting its delivery target from 2023.

A key part of its plan to reach 124,000 global sales by next year is the arrival of the large, premium Polestar 3 SUV, which will make its global debut in October.

Production issues have not slowed Polestar’s market expansion as it is now active in 23 markets, up from 19 at the end of 2021, with Spain and Portugal among the main new additions.

Italy and Israel will be added before the end of the year as part of the company’s goals to have operations in 30 markets by the end of 2022.

The Swedish company said its vehicle sales more than doubled to around 13,600 and orders more than tripled to around 23,000 in the first four months of the year, compared to the same period of 2021.

“No short or medium term economic effects have shaken our goal of selling 290,000 cars in 2025, which is 10 times more than we sold in 2021,” Polestar CEO Thomas Ingenlath said in the statement. .

Polestar, which was founded in 2017 by China’s Geely and Volvo Cars, is set to merge this year with special purpose acquisition company (SPAC) Gores Guggenheim.

Car rental company Hertz Global Holdings announced in April that it would buy up to 65,000 Polestar electric vehicles over five years.

Douglas A. Bolduc and Reuters contributed

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