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Weekly Recap: Volvo buys Polestar, makes performance a priority

Volvo is taking its performance business in-house, and the Swedish carmaker announced Tuesday that it bought tuning company Polestar, which has long been known for producing sporty Volvos. The move allows Volvo to ramp up its performance business, and it plans to increase Polestar-branded vehicle sales to 1,000 to 1,500 annually, up from the 750 total projected for this year. The companies have been working together on motorsports projects since 1996. Financial terms of the sale were not released, and Polestar workers will move over to Volvo. Former Polestar owner Christian Dahl will keep control of the Polestar racing team and operate it under a new name. In addition to sales volume, Volvo has ambitious plans for other parts of Polestar, including its aftermarket business. Volvo also said it will use its twin-engine hybrid technology for Polestar models in the future, though specifics and timing were not revealed. Meanwhile, Volvo announced it will offer a run of 265 total Polestars in the United States for the 2016 model year, with S60 and V60s available. "Driving a Volvo Polestar is a special experience. We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars," Volvo CEO Hakan Samuelsson said in a statement. OTHER NEWS & NOTES 2016 Chevy Silverado, GMC Sierra, get nose jobs Automakers tend to refer to light updates as 'facelifts,' and that's exactly what Chevy gave the 2016 Silverado and GMC Sierra. Chevy slightly changed the front end of the truck. Using the one photo released of the new Z71 model as a guide, we can see that the headlights went from a stacked vertical design to single bulbs, and they are set on top of LED running lights. The grille has more body-colored elements instead of shiny metal, and the hood has a new line running down the middle (look really closely). The design theme will be similar across the portfolio, though materials and details will vary, a spokesman said. Some models, like the High Country and LTZ will have more chrome, and the LEDs are only for the upper trims. Chevy also said it will use the eight-speed automatic transmission on more versions of the Silverado, and it updated the MyLink feature to support Android Auto and Apple CarPlay.

Volvo XC40 and C40 electrics get new motors, more horsepower, longer range

Late last year came reports of improved versions of the Volvo XC40 Recharge and C40 Recharge for Europe. Configurators over the Atlantic showed there wouldn't just be new rear-wheel-drive models, but more battery, more range, and faster charging. The Swedes have finally published the official list of updates, the tweaks even better than the reportage and websites showed. First, the rumors are true, Volvo is back in the rear-driver game after 25 years on the sidelines. The automaker took the previous e-motors off the front axle, putting its in-house-developed, more powerful, and more efficient e-motor on the rear axle. This first use of the new e-motors bumps output from 228 horsepower to 235 horsepower in the RWD trims when combined with the 60-kWh standard range battery. That, plus cooling improvements for the pack, means the XC40 Recharge's range jumps from 425 kilometers on the WLTP cycle to 460 km (285 miles), the C40 Recharge's range going from 438 km to 476 km (296 miles). Plugged into a charger capable of at least 130 kW, refilling from 10% to 80% takes about 34 minutes.  We specified "standard range battery" because another new treat is a second RWD trim: Volvo will plug its 82-kWh battery into the powertrain for those willing to pay. But wait, there's more: The big pack powers an even juicier e-motor making 248 hp. The added gumption boosts range in the XC40 Recharge to 515 km (320 miles), in the C40 Recharge to 533 km (331 miles). And again, improved cooling permits uprated charging speed of 200 kW, cutting the run from 10% to 80% SOC to approximately 28 minutes. Dual-motor variants make the change to asymmetric output as revealed before, giving up two 201-hp e-motors for a new 156-hp motor on the front axle and that in-house 248 hp motor on the rear. In conjunction with better cooling, the XC40 Recharge Twin Motor climbs to 500 km (311 miles) of range on a charge, a 62-km hike, the C40 Recharge Twin Motor to 507 km (315 miles), a 56-km enhancement.  Marginal gains also come from a set of more aerodynamic 19-inch wheels.  The updated twin-motor siblings are expected to enter production in May, the single-motor versions in the fall. We only get the Twin Motor models here. If our variants reflected the same range extensions as in Europe, the 14% rise for the XC40 Recharge would give our car a 255-mile range, the C40 a 12% boost to 254 miles of range.

Trade war tactics: How Volvo will land a cheap Chinese EV on U.S. shores

A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world's best-selling EV, but for about $8,000 less. The EX30 from Volvo Cars, the Swedish luxury brand owned by China's Geely, foreshadows the fierce competitive threat U.S. automakers could face from Chinese EV manufacturers that have surged far ahead of global rivals, especially on affordability. The $35,000 window sticker of Volvo's compact SUV hits a sweet spot in the U.S. market, where most buyers cannot afford most EVs. The competitive price reflects an unusual combination of Geely's China-specific cost advantages and Volvo's ability to skirt U.S. tariffs on Chinese cars because it also has U.S. manufacturing operations, according to interviews with four sources familiar with Volvo and Geely strategy and several U.S. trade policy experts. Chinese EV makers can undercut global competitors largely because of the nation's domination of battery minerals mining and refining, as well as its long-standing commitment to EV development, including heavy government subsidies. In addition, Geely has slashed manufacturing costs by merging supply chains and sharing platforms and parts with Volvo and other Geely brands, according to two senior Geely managers, who spoke on condition of anonymity because they are not authorized to speak publicly. Despite its aggressive price, Volvo is targeting hefty profit margins on the EX30 of between 15% and 20% globally, said a third Geely source. China's EV dominance will be on display this week at the nation's premier auto show in Beijing. In the China market, the world's largest, dozens of domestic EV brands are fighting it out in a price war while foreign automakers have steadily lost market share. The intense competition has driven China's biggest EV makers, led by BYD, to accelerate exporting of EVs that can capture higher prices and profits in less competitive overseas markets. The EX30 will be among only a handful of China-made cars sold in the United States, none of them from Chinese brands. Vehicles from China currently face a 27.5% tariff and increasingly strident calls for higher trade barriers from U.S. automakers and their political allies. But Volvo is eligible for tariff refunds under a law that awards them to firms with U.S. manufacturing operations — such as VolvoÂ’s South Carolina plant — that also export similar products, according to U.S.