While hype surrounds the Tesla Inc. (NASDAQ: TSLA) upcoming line of affordable vehicles, the Model 3, competition for electric vehicles is becoming fierce. Among the competition, Volvo is announcing that the company will introduce a separate division called “Polestar” that will produce and market “high-performance electric cars”.
MSN reported that Volvo has previously marketed the S90 and V90, but failed to gain public recognition. Volvo hope its separation between Polestar, along with “a lot of hard work”, will bring more recognition from the general public.
President and chief executive of Volvo Cars, Håkan Samuelsson stated “Polestar will be a credible competitor in the emerging global market for high performance electrified cars.” Recently, they have also announced that they will stop the manufacturing of diesel engines. This development highlights the Swedish carmakers attempt to swing the focus of the company towards the electric vehicles (EV) division.
Similar to the Tesla’s Model 3, the price of Polestars of are predicted to range from $35,000 to $40,000. Despite the similar price, Volvo’s new line will offer a higher range of 402 km (250 miles) and the model 3 will offer only 246km (215 miles).
Some of Volvo’s premium performance competitors have attempted to “go green” by developing hybrid engines, but none offer the selection fro, a brand that only produces electric vehicles.