Swedish premium electric car brand Polestar's CEO Michael Lohscheller visited Korea. Because the Polestar 4 is scheduled to be contract-produced at Renault Korea's Busan plant and key suppliers of the batteries to be mounted in the Polestar lineup are in Korea, one can reasonably guess what schedule he might follow during his visit.
Detailed visit plans were not disclosed, but on the morning of the 20th he took a short break to give interviews to several domestic media outlets. Michael Lohscheller was appointed Polestar global CEO in October last year, so this is his first time appearing directly before domestic media. Before joining Polestar, Lohscheller served as CEO at Opel, VinFast and Nikola Motor Company, and worked as CFO at Opel, Volkswagen and Mitsubishi.
The Polestar 4 to be produced at Renault Korea's Busan plant was the most interesting issue in this interview as well.
Weak sales in China have persisted, and with U.S. tariffs on China affecting its role as a production base, the reality is that China's function as a production hub is shaken. The importance of the Busan plant is increasingly apparent.
Against this backdrop, when asked, "Is North America a two-track strategy using Volvo's local plants and Korea using the Busan plant to export? Despite the U.S.-China tariff issue, does the Busan plant remain important?" Michael Lohscheller said, "The Busan plant will continue to maintain strategic importance and is obviously important even now."
Lohscheller said, "Polestar will pursue a strategy centered on three pillars: Europe, North America and Asia. Busan has very high strategic value as a production base that connects Asia and North America by producing the Polestar 4 for export to North America. In fact, I visited Canada two weeks ago and witnessed the first arrival of Polestar 4s produced in Busan to the North American region. Busan will continue to be a key hub for reliably supplying vehicles to the North American market."
When the decision was made to contract the Busan plant for production (2022), there was no tariff issue, but as a result Busan became a production base that can avoid U.S. tariffs on China (about 100%). I asked the specific reasons for choosing Busan as the production base and the future plans for domestic sales.
Michael Lohscheller said, "Tariffs can be one reason, but the decisive reasons were a comprehensive assessment of the Busan plant's high production quality, cost efficiency and overall experience," and added, "Currently the Busan plant's volume is only the beginning of exports to North America, but since the quality has been proven, I believe there will be opportunities to expand to other markets in the future. Whether we will sell domestically has not been decided yet, but I think various opportunities will open up in the future."
I was also curious whether there are plans for direct investment in Korea beyond contract production at the Busan plant, such as an R&D center or a design hub.
Lohscheller said, "The possibility is open. There is an English proverb, 'Walk before you run.' You should test even a stone bridge before crossing it. Because North American consumers are very demanding about quality and competition is fierce, first we need to verify success in North America with vehicles produced in Busan. Once that success is certain, we can look for other opportunities."
Polestar is a company listed on the U.S. Nasdaq, but its recent stock performance has not been good. Recently the share price fell below $1, raising delisting concerns on Nasdaq, and a reverse stock split (1-for-30) was announced.
When asked if there are other measures to boost the stock, Lohscheller said, "A reverse stock split is a simple administrative procedure and has no impact on Polestar's actual business operations. We are focusing on securing long-term trust and stability. We will concentrate on expanding retail stores, launching new cars and executing our business plan. Global retail sales grew about 35% through September this year and customer satisfaction indicators have risen. Our partnership with Volvo is solid. We will focus on the essence of the business rather than administrative procedures."
Mentioning the increased shareholding by the Geely group and expressing concern about whether independent decision-making in new car development or design is possible, Lohscheller said clearly, "Polestar is a company listed on the U.S. Nasdaq. Although representatives from Volvo and Geely sit on the board, it is managed independently at the board level and governance is clear. Management decisions and design are led by the Swedish headquarters."
I was also curious about the 'Polestar 5' scheduled for release next year.
Michael Lohscheller said, "The Polestar 5 is a high-end electric performance GT that represents the brand. It offers powerful performance with a 0-62 mph time in the low 3.2-second range while providing spaciousness for four people, making it suitable for everyday driving. From chassis tuning to design and the use of recycled materials, it is a model that concentrates all of Polestar's capabilities. Positioned above the Polestar 4, it is expected to serve as a 'brand shaper' that elevates the image of the entire brand."
Asked how introducing higher-priced lineup models (Polestar 3, 5) might play a role in the fiercely competitive Korean electric car market, he said, "If the Polestar 4 plays the role of the 'waist' and creates momentum, next year's Polestar 3 (large SUV) and Polestar 5 (GT) will complete the brand's premium image. By launching higher-end models in terms of price and performance, they will greatly help solidify our position as a luxury EV brand not only globally but also in Korea."
Polestar recorded high sales growth this year in Korea's imported car market (triple-digit growth year over year).
Michael Lohscheller said, "The growth driver is undoubtedly the Polestar 4. It is a vehicle very well suited to the Korean market in terms of design, performance and price competitiveness. Also, the efforts of Polestar Korea and dealers, and excellent brand spaces like Seoul Space created synergy," and evaluated, "I believe sharing Volvo Car's service network gives customers the greatest peace of mind. They can use more than 30 Volvo service centers in Korea, and experienced engineers are in place. This is a strong differentiator that other new brands do not have."
Asked about plans to expand use of Korean batteries (such as SK On), he was cautious, saying, "Sourcing local parts when entering a local market is generally a good strategy. But the main purpose of this visit is to listen to the voice of the Korean market, inspect sales operations and identify what is needed for growth rather than to sign a specific contract. (He declined to comment specifically on meetings with battery manufacturers) We are leaving various possibilities open as we prepare for the future."
When asked what brand positioning Polestar will take in the long term and how it will shape the strategy for the new car (Polestar 5), he said, "The future of mobility is ultimately zero-emission vehicles. Polestar's positioning is clearly premium. Instead of competing on price discounts, we compete on three pillars: Scandinavian design (a distinctive design language), performance (high performance based on motorsport DNA) and sustainability (pursuing eco-friendliness from materials to production). These three elements have strong appeal, especially to forward-looking younger generations. We will target customers who want both fun driving and environmental responsibility."
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