How the Polestar 3 will get out of the US factory

The Ridgeville facility, which opened four years ago and is still underutilized, currently builds just one car, the low-production Volvo S60 sedan. At the end of next year, it will begin to be collected EX90 a large crossover.

AutoForecast Solutions vice president Sam Fiorani said supplying most of the world from a single factory will improve economies of scale.

“Volvo needs to increase production above 80 percent capacity in Charleston to make production profitable,” Fiorani said. “Just adding the Volvo EX90 isn’t going to make it happen.”

Deliveries to the US will give Polestar a competitive geopolitical advantage. By making the crossover in America, Polestar would avoid China’s roughly 25 percent import tariff, which would push its starting price above $100,000.

Domestic production also makes for more manageable logistics.

The US will be the largest market for the mid-size Polestar 3, accounting for a third of sales. According to the Automotive News Research & Data Center, midsize premium crossovers were the largest premium crossover segment in the U.S., with sales of nearly 100,000 more than compact premium trucks in the first nine months of this year.

China will consume a fourth of the world’s production, and the rest will go to various markets in Europe, the Middle East and Africa.

About 70 percent of the auto supply chain already operates in America, according to Nobelius. Suppliers include Brembo for braking, Luminar for lidar sensors and Nvidia for central power.

Investing in two supply chains, one in China and one in America, the chief operating officer said, creates “reliability” in supply lines and allows Polestar to “shift volumes a little bit.”

Volvo’s east coast location and proximity to major ports make it ideal for supplying European markets.

The head of Polestar in the US, Gregor Hambro, said that the localized production will speed up deliveries to customers.

Hypothetically, he said, “with local production, we don’t lose eight to 10 weeks while the car is on the water” when shipping from China.