Premium carmaker Volvo Cars has acquired 100 per cent of Polestar the Swedish high performance car company including the brand name.
The term Polestar will now be used as the model name for Volvo's special high performance cars and, in the future, will also utilise Volvo's twin-engine electrification technology to develop next generation performance cars.
Volvo is the largest manufacturer of plug in hybrid cars in Europe and leader in advanced vehicle electrification technology. The Swedish brand currently develops and manufactures some of the most powerful and environmentally friendly hybrid engines in the automotive industry.
Volvo and Polestar share a long history. The two names have been working in motorsport since 1996 and in recent years have signed a cooperation agreement to jointly develop Polestar versions of Volvo cars that combine a comfortable Volvo driving experience with a very high level of power and handling.
The Polestar brand is already firmly established internationally through the sale of Polestar-branded Volvos. In 2015, Volvo expects to sell 750 Polestar versions of the V60 wagon and S60 sedan globally. Polestar sales are forecast to increase to between 1,000 and 1,500 cars a year in the medium term under Volvo's ownership.
Volvo will also benefit from the sale of aftermarket Polestar performance optimisation kits for existing Volvos, while the Polestar racing team will be renamed and will remain under the control of Christian Dahl, the former owner of Polestar. The brand will continue to work alongside Christian Dahl.
Håkan Samuelsson, president and chief executive of Volvo Cars, said: "Driving a Volvo Polestar is a special experience. We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars."
Christian Dahl, added: "We are extremely satisfied with the way the performance business with Volvo has developed. But we are a racing team first and foremost. This is an opportunity to return our full attention to our core business to develop and race Volvo cars."