Polestar suffered badly financially in 2024, but the brand is starting the year under a new CEO with a plan that involves, among other changes, acknowledging that even EV start-ups need to embrace some of the more time-proven ways of operating.
“A lot of things need to change,” Michael Lohscheller told analysts on a call ostensibly to mark Polestar's delayed third-quarter results but mainly to lay out the parameters of its reboot.
Lohscheller, a former CFO and CEO of Opel-Vauxhall, joined in October to replace Thomas Ingenlath.
With him comes a more laser-focused on actively selling cars profitably, rather than the more aesthetically driven ‘design and they will come’ ethos that previously guided the Geely-owned brand.
The changes “start with the sale and distribution side”, Lohscheller said.
Polestar initially followed Tesla’s lead with a direct-to-consumer approach, soft-selling cars either online or from minimalist 'Spaces' in high-visibility shopping areas. This fostered a usefully close relationship between customer and brand but was expensive and slow to shift metal. As competition hots up, however, Polestar is adopting a more aggressive approach by partnering with dealers better equipped to close the sale – something it calls ‘active selling’.
In the jargon of retail, Polestar is shifting most countries to a ‘non-genuine agency model’, in which the dealer sells on behalf of the car maker but is additionally incentivised to increase sales, rather than just accepting their agent fee.
“You can really already now see that the orders are taking off,” Lohscheller said, citing a 37% increase in the fourth quarter.
The fact that Polestar is now selling the delayed 4 coupé-crossover and 3 large SUV to supplement the 2 liftback is also helping.
Polestar aims to grow its number of dealers across the 27 markets it sells from 140 to 200 by the end of the year with a medium-term target of 300. In the UK, it aims to jump from eight outlets to 20 in the next 12 months.
Launching in new markets wil also help keep the promise Lohscheller made to analysts that Polestar would grow sales between 30% and 35% between 2024 and 2027.
Last year, Polestar sales actually fell 15% to 44,851 globally, although it returned to growth in the last three months, with sales up 5.3% on the launch of the 3 and 4.
Despite its Chinese ownership and global footprint, Polestar is very much a European brand when it comes to sales performance, and last year the UK was its biggest global market, with 8693 units.
Add your comment