The trade war in China has a new victim

In the absence of sales. Meanwhile, Polestar is preparing to close its concessions in China and leave this market to focus on other countries.

The situation of the automotive market is not yet quite a fixed. In addition, And for good reason, the manufacturers trade war china new victim new find it difficult to bring up their sales. In addition, competition is increasingly trade war china new victim strong. Similarly, This is particularly the case in Chinewhere there are no less than 150 local brands. Nevertheless, And it is seriously starting to pose some problems. Consequently, Indeed, all companies can no longer hold in this competitive climate. And some are forced to go to go see elsewhere. This is particularly the case with one of them, which decided to close its concessions in the Middle Empire.

A crisis in China

This is Polestar, which belongs to the Geely group, alongside Volvo, Lotus or Zeekr. And now the firm, whose seat is however based in Göteborg, Sweden, plans to go from China. It is soon, since the departure would be planned at the end of 2025, according to the site Car News China. This decision marks a new setback for the trade war china new victim new Suédo-Chinese brand. She then happens that her sales in the Middle Empire have become almost nonexistent. And that the trade war china new victim company is going through a period of great financial difficulty.

Indeed, in the first half of 2025, Polestar sold only 69 cars in China. Worse, in April and May, no vehicle has been sold. A worrying situation, especially when compared to the global performance of the brand. Because over the same period, Polestar delivered 30,300 vehicles worldwidean increase of more than 50 % in one year. Suffice to say that things are quite disturbing for the Swedish manufacturer. Thus, the release of the Chinese market already seems well committed. We notice that the joint venture Polestar Times Technologist Co., Ltd., Created with Star Meizu, has ceased all activity since April.

A difficult situation

Moreover, The online sales system de Polestar closed. From now on, a telephone trade war china new victim new call is necessary to organize a test. Only one point of sale remains open, in Shanghai. In addition, the manufacturer has also experienced changes trade war china new victim to its head in China. Managing Director Wu Huijing left his post and was replaced by Hu Shiwen. It is now the legal representative of the local branch of the company. Behind the scenes, financial difficulties accumulate. At the end of 2024, the firm displayed a negative net asset of more than $ 3.3 billion.

The company then totaled 7.3 billion debts for only 4 billion assets. Since 2020, the manufacturer has lost more than $ 5.1 billion. Thus, in 2024, net losses reached 2 billion. To limit the damage. the Chinese billionaire Li Shufu, boss of the Geely group and principal shareholder, urgently injected 200 million dollars into Polestar. Thanks to this operation, its share in the company rose to trade war china new victim new 66 %. That of Volvoanother important shareholder, slightly fell to 16 %. But despite this rescue buoy, many experts remain skeptical.

They doubt that this financial contribution is enough trade war china new victim to put the mark on foot. However. the company aims at profitability from 2025. an ambitious objective in the face of fierce competition on the electric cars market, in China as elsewhere.