Polestar’s Leadership Overhaul: New CEO Aims to Revitalize Struggling EV Maker

Polestar is set to replace its long-serving CEO, Thomas Ingenlath, with Michael Lohscheller, a seasoned automotive executive with experience leading Opel, VinFast, and Nikola. This leadership change comes as Polestar strives to address ongoing challenges, including delayed model launches, missed delivery targets, and a gradual separation from its co-founder, Volvo Cars.

Polestar’s U.S.-listed shares took a hit, dropping over 12% to 99 cents in early trading ahead of the company’s second-quarter results announcement on Thursday. Lohscheller will officially take over as CEO on October 1, stepping into a tough role as Polestar initiates a major cost-cutting strategy aimed at achieving profitability and cash flow breakeven by 2025.

The electric vehicle sector’s broader issues, including declining demand for EVs and a price war triggered by Tesla, have compounded Polestar’s struggles. Additionally, punitive import tariffs from the EU, U.S., and Canada on China-made EVs have further escalated costs, pushing Polestar to reduce its dependence on Chinese manufacturing.

Lohscheller’s extensive leadership background contrasts with Ingenlath’s design-focused career, who was Volvo Cars’ senior vice-president of design before taking the helm at Polestar in 2017. The leadership change also underscores Polestar’s shift away from its Volvo roots. This year, Polestar appointed a new chair, Winfried Vahland, replacing Hakan Samuelsson, a former Volvo CEO. The company also recently changed its head of design to another executive with Volvo ties.

Polestar’s evolving relationship with Volvo is evident in its production strategy. While the Polestar 2 and 3 models are manufactured in Volvo facilities, the Polestar 4 is produced in a Geely-run factory and does not rely on Volvo’s platform, a trend expected to continue with future models. Volvo Cars has reduced its stake in Polestar from 48% to 18%, signaling a strategic withdrawal. Meanwhile, Geely, now Polestar’s majority shareholder, remains committed to supporting the EV maker, including providing further financial assistance.

A Geely spokesperson affirmed the company’s backing of Polestar’s board decisions, including the CEO appointment, and expressed support for the board’s strategy to realize Polestar’s business objectives. Polestar’s new chair, Winfried Vahland, stated confidence in Lohscheller’s ability to steer the company through its next phase of development, emphasizing his belief that Lohscheller is the right leader to navigate the challenges ahead.

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