Polestar's Cuts 10% of Workforce
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The EV industry is going through a difficult period, with job cuts and lowered production estimates.
- Polestar is forced to cut 10 per cent of its employees, and the projected output has been revised to between 60,000 and 70,000 units.
- Additionally, The manufacturing of Polestar 3 SUV and the Volvo EX90 are delay due to software complexities.
Swedish EV Company had attributed a postponement in production of their '3' model to the difficulties being experienced by automotive businesses globally.
According to Automotive News Europe, Polestar stated that approximately 300 positions would be eliminated, and all hiring activity stopped. This is in addition to the 500 jobs that were originally scheduled to be filled this year.
Forecasts of output for 2023 have been reduced from 80,000 to a range of 60,000 to 70,000. Last year saw 51,491 units produced.
Manufacturing the Polestar 3 was due to commence in the middle of this year; however, it has been postponed until the initial quarter of 2024. The cause for the deferral is attributed to Volvo Cars needing to carry out more software development and tests, according to Reuters.
The Swedish carmaker, Volvo – majority-owned by Geely – has announced a postponement of their EX90 electric SUV manufacturing launch. In an official statement, it was reported by Reuters that production would begin sometime during the first half of 2024.
Volvo had previously announced plans to launch the EX90 at the end of 2023, and it was expected to arrive in showrooms early next year. But a spokesperson from the company has declined to comment on when it will now be available. This is part of a wider trend among EV manufacturers, such as Lucid and Fisker, who have revised their production estimates.
Worries of running out of capital have been a major concern for EV startups, where many companies have seen their earlier market valuations rapidly decrease, with limited access to resources in an unstable climate.
Polestar has stated that it is well-equipped to sustain its operations up until 2023, after obtaining a $1.6 billion investment from Volvo Cars and Geely Investment in November.
Polestar retailers, who now face heightened pressure due to further delays, have only one new EV to sell - the Polestar 2. Their first model, the more expensive Polestar 1 PHEV, can only be found on the pre-owned market.
SEE ALSO: Volvo EX90 $80K Price-Tag Worth It? USA Debut At CES
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