Volvo’s next electric SUV remains shrouded in secrecy, with the brand offering little insight into which models will be produced in eastern Slovakia. However, speculation is mounting over what could emerge from its production lines.
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Initial expectations pointed to two Volvo-branded models. Yet another possibility is gaining traction – one that could see Košice play a role in the European expansion of Polestar, the Chinese-backed premium electric marque. Reports suggest that Polestar’s next model, the Polestar 7, could be manufactured in Europe, with Slovakia increasingly seen as a likely location, according to Hospodárske noviny.
Polestar
Polestar’s links to Volvo are well established. The Swedish automaker is partly owned by China’s Geely Holding, which also controls a significant stake in Polestar. Originally founded in 1996 as a racing outfit modifying Volvo cars for competition, Polestar was later acquired by Volvo. However, its ownership has since evolved: 39 percent of Polestar is controlled by China’s PSD Investment, led by Geely chairman Li Shufu; Geely Holding holds a further 24 percent; Volvo retains 18 percent; and the remainder is publicly traded.
This restructuring, coupled with investment, has helped Polestar emerge as a standalone brand. Yet its manufacturing remains intertwined with Volvo and Geely, relying on production facilities in China, the US, and South Korea. Polestar currently produces three models – Polestar 2, 3, and 4 – with the Polestar 5 due this year, the Polestar 6 in 2026, and the Polestar 7 expected to align with Košice’s production timeline.
Volvo has stated its intention to build two small electric SUVs in Slovakia. Producing two nearly identical models under the same brand would risk internal competition—a problem previously faced by Jaguar Land Rover, writes Hospodárske noviny. Instead, Košice could follow the example of Volkswagen and Stellantis, which build multiple vehicles on shared platforms to cut costs while maintaining distinct brand identities.
The Košice factory is already attracting a growing ecosystem of suppliers. Data from Slovakia’s investment agency shows that while German firms have traditionally dominated new projects, Chinese investments are catching up. Notably, Jiangsu Xinquan Automotive Trim has chosen Prešov for its plant.
EU’s decision
A key driver for Polestar’s European production shift is the EU’s decision to impose tariffs on Chinese-made EVs, citing state subsidies that distort competition. Yet the move also mirrors China’s past demands that European manufacturers localise production within its borders.
Chinese carmakers are accelerating their European expansion. BYD is constructing a plant in Hungary, while SAIC has reportedly explored Slovakia as a potential site. Volvo, which produces its EX30 and EX90 models in China, has already relocated some production to Belgium to avoid tariffs.
Volvo’s move to Košice represents a €1.2 billion investment, set to employ around 3,300 people in the first phase and gradually ramp up production to 250,000 vehicles per year.
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Publish date : 2025-02-18 11:01:00
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