Automobile major Volvo Cars has acquired 100% stake in Swedish high performance carmaker Polestar as well as the brand, set to be utilized as model name for high performance vehicles out of its stable.
Currently developing and manufacturing environmentally-friendly hybrid engines in the automotive sector, Volvo also plans to arm Polestar with twin engine electrification technology.
Besides, the entire Polestar Performance workforce will be inducted into Volvo.
Volvo Cars president and chief executive Hkan Samuelsson said: "Driving a Volvo Polestar is a special experience. We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars."
Polestar had worked with Volvo in motor sport since 1996. The duo had also signed a cooperation pact to jointly develop Polestar versions of Volvo cars.
Volvo projects sales of 750 Polestar versions of the V60 wagon and S60 sedan worldwide globally in 2015. Under the leadership of Volvo, polestar sales are also expected to hover between 1,000 and 1,500 cars a year in the medium-term.
Polestar's former owner Christian Dahl, who will continue to be at the helm of Polestar racing team, said: "We are extremely satisfied with the way the performance business with Volvo has developed. But we are a racing team first and foremost. This is an opportunity to return our full attention to our core business - to develop and race Volvo cars."
