In the car market, Polestar can be said to be a relatively well-known company, sitting on Geely, Volvo two giants blessed Polestar could have been born with a golden spoon, but just recently the news of Polestar's layoffs came, where is Polestar, which has only sold 5,000 units in three years? What should we make of this?
1. Polestar lays off 15% of its workforce?
Electric vehicle maker Polestar has announced plans to lay off about 450 employees worldwide, or about 15% of its workforce, due to the current challenging market, according to Donews. A spokesperson for the company said the company needed to scale its business and operations as part of its business plan. It is understood that the goal of this layoff is to accelerate the improvement of profit margins and reduce the company's total capital requirements to achieve cash flow breakeven by 2025.
Not long ago, Polestar held the regional launch and user delivery event of the Polestar Polestar 4, marking the official start of mass delivery of the Polestar 4 nationwide. It is reported that the new delivery** is 299,900-399,900 yuan.
In terms of energy replenishment, Polestar plans to complete 60 self-built charging piles in the first quarter and access more than 550,000 charging pile resources, covering 331 prefecture-level cities, with a city coverage rate of 98%. With the brand's self-built charging piles, shared supercharging piles with high-end brands, and public charging stations as the three fulcrums, users can connect with the worry-free charging experience with just one click through the Polestar app. 100 Quick Reviews
Where is Polestar Road, which only sold 5,000 units in China in two or three years?
Polestar, as a new car brand jointly launched by Geely and Volvo, originally had a strong market advantage, but the development of these years has not been so satisfactory, and it has been forced to take the practice of laying off employees, how should we look at this matter?
First of all, Polestar was born with a golden spoon but it was not in a good situation. Polestar, as a high-end electric vehicle brand jointly conceived by Geely Holding Group and Volvo, a famous Swedish luxury car manufacturer, was expected to occupy a place in the new energy vehicle market by virtue of the deep foundation of the two parent companies in technology research and development, manufacturing process and first-chain management. However, the reality is not exactly what the script envisioned. Despite its significant market advantage, Polestar has underperformed in recent years, especially in the highly competitive Chinese market, a challenge that ultimately led to a 15% layoff in the company to restructure its operations and reduce costs.
Polestar's drastic layoffs undoubtedly reflect a major setback in the pace of global expansion, particularly in the Chinese market. In the face of continued weak sales figures, especially in China, which has only sold 5,000 units in three years, although the authenticity of the data is not known, if it is true, such a report card is obviously far lower than expected for a company that aims to compete with top electric car brands such as Tesla. By cutting labor costs, Polestar sought to restructure its organization and streamline its operational processes to more efficiently adapt to changes in market demand, while retaining its core competencies to meet future industry challenges.
Second, what's wrong with Polestar? Polestar's backing on Geely and Volvo seems to have a unique advantage, but in fact, this dual background can also become a shackle to its rapid growth. On the one hand, Polestar's product development and design are inevitably influenced by the existing brand style and technology path, and over-reliance on the resources of the parent company may lead to a lack of brand innovation, making it difficult to stand out in the highly homogeneous electric vehicle market and form unique product characteristics that meet the needs of local consumers.
On the other hand, Polestar's brand positioning and product pricing strategy do not seem to have their finger on the pulse of the Chinese market. Focusing on high-performance pure electric vehicles, it is aimed at a relatively niche market segment, and the size and acceptance of this group in the Chinese market are not enough to support the goal of large-scale sales. At the same time, several Polestar models have failed to maintain consistency and consistency in their prices,** and fluctuations have blurred consumers' perception of the brand's value, further influencing purchasing decisions.
In addition, the frequent changes in the management of Polestar cars in China are also a factor that cannot be ignored. The instability of the internal management team directly reflects the swing of strategic planning and execution, which is undoubtedly an internal friction for auto brands that need a stable development strategy and long-term cultivation of the market, which not only hinders the shaping and dissemination of brand image, but also weakens the brand's execution in marketing network expansion and after-sales service improvement.
Third, despite the intense pressure Polestar is facing in China, the brand's performance is not bleak from a global perspective. In other regions or countries, Polestar has indeed achieved some success, with considerable sales growth, which proves that Polestar's products and technologies are inherently competitive. The success of the international market has provided Polestar with valuable experience and potential new growth points, and has shown that Polestar still has a lot of market prospects to tap into if it finds the right market positioning and business strategy.
Fourth, in the face of declining sales and financial difficulties, layoffs are undoubtedly a short-term measure to relieve pressure. However, it is more important for Polestar to get to the root of the problem and adjust its marketing strategy. This includes, but is not limited to, revisiting the brand positioning, optimizing the product line, stabilizing management, and clarifying the strategy in China. Only by making substantial changes in these areas will it be possible for Polestar to regain its place in a highly competitive market.