Volvo Cars and its Chinese parent unveil their first Polestar model and plan to invest $760 million in the electric vehicle brand. Laura Frykberg reports.
When the world's biggest car market says it's getting greener, the auto industry - unsurprisingly - goes in the same direction. The Polestar 1 is a prime example. The first in a series of premium hybrids by Volvo and its Chinese owner to be in production by 2019. SOUNDBITE (English) POLESTAR CEO THOMAS INGENLATH SAYING: "We will establish Polstar as an individual brand. We will use technology that is available within our family, but it will be developed in its own direction." The four-seater vehicle aims to rival other green industry players, like Tesla and Mercedes. It's 600 horsepower output can propel the car from nought to 100 km per hour in under 4 seconds. it's also available to be bought for one-to-three year subscriptions. A sign the industry is getting up to speed with changing car ownership habits. But perhaps not with stagnating incomes. SOUNDBITE (English) POLESTAR CEO THOMAS INGENLATH SAYING: "This car is in the range between 130 and 150,000 euros, which when you look at it is actually a very, very attractive price." Volvo is one of many automakers pushing for joint ventures with Chinese firms. Since beijing announced by 2025, electric and hybrids must make up at least a fifth of auto sales. And there's no sign that is slowing down either. Vehicle sales across China rose in September for a fourth straight month