Automotive industry E-car manager expects price increases due to customs duties
The head of electric car manufacturer Polestar, Michael Lohscheller, has predicted price increases due to rising costs caused by customs duties. The price increase can only be cushioned in the short term with "tactical measures", as he told the German news agency DPA.
11.04.2025, 01:40
SDA
"I can't imagine that this won't be passed on to the market in the medium and long term," Lohscheller told DPA. "I am convinced that the industry will price in the sum total", even if cost reductions are used to counteract this.
The Swedish-based electric car manufacturer is controlled by the Chinese Geely Group, which is also behind Volvo. So far, Polestar has mainly produced in Asia - but also at the Volvo plant in South Carolina for the US market. Electric cars from China have been subject to a 100 percent tariff in the USA since the last administration of President Joe Biden. The far-reaching tariffs threatened under Donald Trump will also apply to components from various countries and are therefore likely to affect all car manufacturers.
Localization as the future
"The plant is already very helpful," said Lohscheller, referring to the factory in South Carolina. There is enough capacity to expand production there for both Volvo and Polestar.
However, it is also about finding more suppliers in the USA or, ideally, close to the plant. "Shipping parts over long distances cannot be the future of the business model," said the Polestar boss. The changeover will not happen overnight, but localization will be the direction of travel. The company wants to build its future compact SUV in Europe.
Extra discount for Tesla drivers
In the last quarter, Polestar increased deliveries by 76 percent year-on-year to 12,304 vehicles. In the USA, the company is attracting Tesla drivers in particular with an additional discount that makes it cheaper to lease a Polestar 3.
Tesla has led the electric car market for years, but experts believe that the brand's image has been damaged by the political activities of CEO Elon Musk. In the USA, Polestar deliveries rose by 74 percent.
Former Opel CEO Lohscheller also attributes the growth to sales not only in showrooms, but also increasingly at dealerships. Advice when buying a car is still important to customers: "The world is changing, but there are a few things that remain."
