Swedish electric automaker Polestar announced Monday the successful formation of its new joint venture with Geely’s Xingji Meizu to develop and produce an operating system for its cars offered in the Chinese market.
“China is one of the fastest growing EV markets in the world. It’s also a market with very specific consumer trends, including increasing levels of integration between consumer electronics devices and vehicles.
By partnering with a company that has a strong complementary competence to our own, we will be able to offer the locally tailored user experience that both drivers and passengers expect.”
Polestar CEO Thomas Ingenlath
Purpose of the JV
The newly formed joint venture will solidify Polestar’s presence in the Chinese electric vehicle market, incorporating the automaker’s design and performance with Xingji Meizu’s software and customer electronics hardware.
In addition, it aims to enhance Xingji Meizu’s technology platform, Flyme Auto, and transform it into a unified operating system for Polestar EVs marketed in China. Polestar claims that this system will encompass various features such as in-car applications, streaming services, and intelligent vehicle software.
Furthermore, the JW will establish a cohesive digital ecosystem by incorporating mobile devices, augmented reality devices, and customer applications.
“The future of our industry will be enabled by integrated devices and platforms that deliver an immersive experience for end users. With the support of the progressive technology of Xingji Meizu, Polestar will take the lead in the field of smart mobility. By working closely together, we will create even better products and offer users a seamless experience across a multitude of devices.”
Xingji Meizu Chairman Ziyu Shen
Organization
Polestar plans to reposition approximately 130 employees from their commercial team in China to the joint venture company. According to the press release, this entity will serve as the exclusive authorized sales and service provider for Polestar China.
Regarding ownership, Polestar will hold a 49% equity stake in the JV, while Xingji Meizu will own the remaining 51%. The Swedish automaker will provide $98 million, while the Chinese tech firm will allocate $102 million for the JV.
Xingji Meizu will also secure future funding for the JV beyond the initial capital the partners contributed.
See Also:
- Polestar 3 electric SUV debuts in China at $100,000
- Polestar announces strategic collaboration with Industrial Bank in China
- Polestar 2 battery replacement cost far exceeds Cars in China
- Polestar 2 now offers YouTube integration feature
- Polestar reveals new high-performance EV
Integrated devices and platforms arguably offer a seamless and user-friendly experience for drivers and passengers, providing easy access to various features and functionalities, such as entertainment, navigation, communication, and vehicle settings. All that said, the new JV and its project would surely be a huge hit in the Chinese market, boosting Polestar’s car sales.
