In an effort to skirt steep tariffs on Chinese-made goods, Volvo plans to move some production of its electric vehicle stock to Europe — and will debut a new model in its wake.
The Swedish carmaker plans to build the compact Polestar 7 EV at its new plant in Kosice, Slovakia, starting in 2028, InsideEVs reported. The latest model will be the first Polestar car made in Europe, and the facility will be able to produce 250,000 units per year when it opens.
The move comes in the wake of tariffs imposed by the Trump administration, which will heavily impact companies that outsource manufacturing to China. Volvo has chosen the Slovakia plant for EV production to sidestep this issue and continue sales to the crucial U.S. market.
Volvo's premium EV spinoff marked the start of 2025 with an exciting finish to the first quarter, which saw a 76% sales increase year over year. Polestar has struggled to gain ground in the EV market, though a recent strategic reset for the brand and shifting interest for buyers has played to its advantage.
By taking advantage of new momentum with this manufacturing shift, Polestar is jockeying for a favored position among American drivers looking to switch to an EV. More potential buyers are moving toward this option for cost reasons, namely the savings on routine maintenance and fuel.
Many also see EVs as the most environmentally friendly option because of the lack of tailpipe pollution. While there are concerns about lithium battery production, as well as the pollution created through charging these cars, the Department of Energy notes that EVs produce six times less carbon pollution annually than gas-powered counterparts.
Combined with other clean energy measures — like home solar panels to charge an EV — owners can limit energy consumption while saving money over time. EnergySage makes the solar installation process easy, allowing potential buyers to compare quotes from local installers — and even save up to $10,000 on the investment.
While the latest Polestar model won't be available stateside until at least 2028, potential EV buyers can expect the car to feature Volvo's next-generation software-defined vehicle platform,
cell-to-body battery packs, and more of the Swedish brand's most cutting-edge features.
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