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Volvo, Polestar reportedly planning twin city-friendly electric SUVs

Volvo is nearly ready to unveil the next generation of the XC90, its flagship model, but it's not forgetting about the other end of its range. It's reportedly planning to launch an entry-level model that will take the form of a pocket-sized crossover powered by an electric drivetrain. Without citing sources, British magazine Autocar reported that the model will ride on a modular platform developed by Volvo parent company Geely and called SEA internally. This architecture already underpins the 001 sold by Zeekr, which is another brand in the Geely empire. No technical specifications are available at this point, but the report sketches the outline of a high-riding model with a sleek-looking silhouette. This isn't the first time we've heard about Volvo's city-friendly SUV; earlier rumors claimed it would be called XC20 or C20, names that would have clearly signaled the model's positioning as being below the 40-badged cars. Volvo is moving away from this naming system, however, and the cars it will launch in the coming years will receive actual names. With that said, both the XC20 and the C20 names are off the table. Polestar's take on the concept of an electric entry-level crossover will be positioned between the 2 and the 3, though it will somewhat confusingly be called 4. It sounds like the model will be bigger and more expensive than Volvo's, and Autocar learned that it could be closely related to the C40 Recharge (pictured) underneath the sheetmetal. If that's accurate, it will share its CMA architecture with the 2, among other models, and it will be offered with either a single electric motor that zaps the front wheels or dual-motor all-wheel-drive. Both EVs will have at least one thing in common: a mission to boost sales. For Volvo, launching a battery-powered car pegged near the bottom of its range will increase the percentage of EVs in its global sales mix. It's planning to cross the 50% mark by 2025. For Polestar, entering cheaper segments will allow it to boost its annual sales by reaching less affluent buyers, though it will remain a premium brand. Polestar 4 is tentatively due out in 2023. There's no word on when Volvo will release its smallest EV to date.

Volvo Cars, Northvolt to build battery plant with 3,000 jobs

Northvolt's new facility in Skelleftea, Sweden.   STOCKHOLM — Automaker Volvo Cars and battery manufacturer Northvolt will build their joint battery plant in Gothenburg, western Sweden, the two companies said on Friday. The new 50-gigawatt-hour (GWh) plant will create up to 3,000 jobs and make battery cells specifically developed for use in pure electric Volvo and Polestar cars, the Sweden-based companies said. Operations will begin in 2025. The two companies said last year they would form a joint venture to develop batteries, including setting up a gigafactory for production and a research and development centre, a total investment of about 30 billion crowns ($3.3 billion). Northvolt and Volvo said former Tesla executive Adrian Clarke had been appointed to lead the production company. "He comes with a long experience from Tesla as well as around how to build these type of factories," Northvolt CEO Peter Carlsson, who also previously worked for Tesla, told Reuters. Volvo Cars head of engineering and operations, Javier Varela, said access to fossil-free energy, skills and infrastructure had been factors for choosing Gothenburg, Volvo's hometown. Competition for talent is fierce, with most battery engineers based in Asia. Tesla and Asian companies such as LG and Samsung SDI are also setting up factories in Europe. Northvolt's gigafactory in the Swedish town of Skelleftea assembled its first battery cell at the end of December, making it the first European company to design and manufacture a battery in Europe. Carlsson said it was running as planned, although he said global supply-chain problems, semiconductor shortages and the COVID-19 had made it more of a challenge. "It has not been the easiest of times," he said. Volvo Cars, majority owned by China's Geely Holding, aims to sell 50% pure electric cars by the middle of this decade and fully electric cars only by 2030. Northvolt, whose biggest shareholder is Volkswagen, has so far receive more than $30 billion worth of contracts from customers such as BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar.  

Volvo to use Oz as test bed for more Polestar models?

We've already told you about the slightly more awesome version of the Volvo S60 that our friends Down Under can now get their hands on. And according to Aussie site Drive.com.au, Volvo may look to the land of Oz for future testing of new, Polestar-tuned, high-performance models.
Volvo has reportedly confirmed that this S60 Polestar run will be an exercise in testing the acceptance of the Swedish tuner's presence as a proper competitor for things like BMW's M division or Mercedes-Benz's AMG. (A tall order, for sure.) "The world is watching this exercise with much interest," Volvo Cars Australia boss, Matt Braid, told Drive.com.au.
Hans Baath, Polestar Managing Director, reportedly hinted that the tuning house had already begun work on a hotter version of the V40 hatchback, but the project was scrapped in order to get the S60 program rolling. If there's success to be found here, this smaller hot hatch could be revisited, as well as a more powerful version of the XC60 crossover.