Volvo, the Swedish automaker, and its subsidiary Polestar have announced delays in the production and delivery of their highly anticipated cars, the Polestar 3 and Volvo EX90.
Originally scheduled for release in 2023, the production start date has been pushed back to the first quarter of 2024. The companies claim that the delay arises due to the additional time needed to develop and test the software, With the aim of ensuring the introduction of high quality compounds and maximize customer benefit.
Polestar delays
Polestar, which achieved record first-quarter delivery thanks to strong commercial momentum, recently received notice of the need to give additional time to final software development, according to Company announcement.
Because of this delay in production, Polestar 3 is now scheduled for release in the first quarter of 2024. However, the start of production for Polestar 4 has not changed and it is still scheduled to launch in China. In the fourth quarter of 2023 and in early 2024 for other markets.
To manage the challenges, Polestar is ramping up its focus on managing costs and increasing efficiencies across the company by freezing hiring and reducing the workforce by 10%.
Impact on Volvo
The delays affected the Volvo EX90, which marked a new era for the company with the introduction of advanced hardware and software technology. The high demand for the vehicle required additional software development and testing time to ensure a high quality customer experience from day one. Subsequently, Production is now scheduled to begin in the first half of 2024.
Software development problems
Production delays for both cars are related to software development issues with the all-new electric platform shared by Volvo Cars. As companies work to address these challenges, the exact implications of deliveries in specific markets, including Australia, are yet to be determined.
The setbacks forced Polestar to revise its global volume forecast for 2023, forecasting between 60,000 and 70,000 vehicles, down from a previous forecast of around 80,000 units. However, the successful launch of Polestar 4 last month provides optimism for the company's growth ambitions and a path to profitability.
The companies focus on managing costs and maintaining their ambitions for growth, while striving to deliver high-quality vehicles that meet customer expectations.
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