As BMW has the M brand and Merceds the AMG division, Volvo wanted to rival this cars with its own performance division. So it bought all the stakes in Polestar tuning company, making it their own.
 
Polestar was already a company specialised in modifying car produced by the Swedish manufacturer, so it happened almost the same way it did with Nissan and Nismo.
 
Polestar will now be used as the model name for special high performance Volvos. Polestar will also in future utilise Volvo’s twin engine electrification technology to develop next generation performance cars.
 
Volvo and Polestar share a long history. They have been working in motor sport since 1996 and in recent years signed a cooperation agreement to jointly develop Polestar versions of Volvo cars that combine a comfortable Volvo driving experience with a very high level of power and handling.
 
In 2015, Volvo expects to sell 750 Polestar versions of the V60 wagon and S60 sedan globally. Polestar sales are forecast to increase to between 1,000 and 1,500 cars a year in the medium term under Volvo’s ownership. The Polestar brand is already firmly established internationally through the sale of Polestar-branded Volvos.
 
Volvo will also benefit from the sale of aftermarket Polestar performance optimisation kits for existing Volvos. No financial details of the deal have been disclosed. Existing Polestar Performance employees will become Volvo employees.