Volvo buys Polestar Performance

Swedish manufacturer Volvo announced yesterday that they will be acquiring performance-tuner Polestar outright. Polestar has been responsible for many Volvo race cars throughout the years, as well as some tricked out road cars, most recently the V60 and S60 Polestar models. Now, Polestar will be able to work in concert with Volvo engineers to build vehicles rivaling those offered from the likes of Mercedes-Benz AMG and BMW M.

For now, the racing arm of Polestar will remain autonomous, with former racer Christian Dahl remaining at the helm. Other Polestar employees will work under the Volvo banner. Polestar has been working in-partnership on the motorsport front with Volvo since an agreement was signed in 1996.

No monetary figures have been announced, but Volvo hopes the transaction will help double Polestar’s annual vehicle offerings, from 750 units to 1,500.

This latest agreement is part of Volvo’s larger plan to raise sales to 800,000 by the end of the decade. In 2014, the Swedish manufacturer—part of Chinese holding company Zhejiang Geely—sold 46,586 vehicles.