Volvo acquires Polestar performance brand

Volvo cars announced today it has taken full ownership of the Polestar brand, the performance car company whose tuning work has gone into recent Volvo models like S60 and V60 Polestar.

Polestar has been central to the Swedish automaker’s motorsports arm since 1996; its reach into roadgoing Volvo models is more recent, but the partnership has created some serious performance cars. Volvo’s acquisition of Polestar gives the car company a proper performance arm, which will boost the credibility of fast Volvos next to AMG-tuned Mercedes-Benzes and M-badged BMWs. Polestar will also sell aftermarket performance kits for existing Volvo models.

Volvo says it expects to sell just 750 Polestar versions of the S60 and V60 in 2015 (a surprisingly small number), but hopes to nearly double that figure following the acquisition. Under the deal, existing Polestar workers become Volvo employees, and the Polestar racing team will be renamed.