Volvo Cars will make its Polestar Performance business a standalone brand within the group, focusing on electric cars, the company said on Wednesday.
The sub-brand will target the likes of Tesla with high-performance electric cars.
Polestar, bought by Volvo in 2015, will produce own-brand vehicles while continuing to deliver high-performance upgrades to the Volvo range. At least some of the cars it makes will be fully electric, but the company declined to say more, adding it will issue more details about its product plans in the autumn.
Competitor
"Polestar will be a credible competitor in the emerging global market for high-performance electrified cars," it said. Major markets are likely to include China and the United States.
The Swedish carmaker has been owned by Chinese conglomerate Geely Automotive since its sale by Ford in 2010.
The new business will be run by Volvo's design chief Thomas Ingenlath, with Volvo's head of communications Jonathan Goodman becoming chief operating officer.
Volvo has worked with Polestar in motorsports since 1996, and acquired the company in 2015.
– (Reuters)