Polestar, the electric vehicle (EV) manufacturer, has announced a significant leadership change amidst challenging times for both the company and the broader automotive industry. On Wednesday, the company revealed that current CEO Thomas Ingenlath will be replaced by Michael Lohscheller, a seasoned executive with extensive experience in the automotive and EV sectors.
Lohscheller, set to assume the role of CEO on October 1, brings a wealth of experience to Polestar. His impressive résumé includes stints as CEO of Opel (owned by Stellantis), Vietnamese EV manufacturer VinFast, and electric truck maker Nikola. This diverse background in both traditional automotive and emerging EV markets positions him well to navigate the challenges facing Polestar.
The leadership transition comes at a critical juncture for Polestar and the EV industry as a whole. Like many of its competitors, Polestar has faced significant headwinds in 2024, grappling with a slowdown in EV demand and intense pricing pressure. The latter has been exacerbated by a price war initiated by Tesla in the previous year, forcing other manufacturers to reassess their pricing strategies.
This CEO change marks a further step in Polestar’s evolution away from its roots with Volvo Cars. Volvo, along with Chinese automotive giant Geely, was one of Polestar’s co-founders and major financial backers until recently. Ingenlath, the outgoing CEO, had previously served as Volvo’s senior vice-president of design before taking the helm at Polestar in 2017.
The shift in leadership is part of a broader restructuring at Polestar. In June, the company appointed a new chairperson, replacing Hakan Samuelsson, who had been Volvo’s CEO for nearly a decade. Additionally, Polestar recently replaced its head of design, another executive with a background at Volvo.
While Polestar’s Models 2 and 3 are still produced in Volvo Cars factories, the company’s Model 4 is manufactured in a Geely-run facility and is not based on Volvo’s platform, signaling a gradual separation from its parent company.
Polestar’s chairperson, Winfried Vahland, expressed confidence in Lohscheller’s ability to lead the company into its next phase of growth, citing the company’s successful startup phase and expanding model lineup.
However, Lohscheller is taking the reins at a challenging time for Polestar. The company is in the midst of implementing a major cost-cutting program as it aims to achieve profitability and cash flow breakeven by 2025. Adding to these challenges are punitive import tariffs imposed by the European Union, United States, and Canada on China-made EVs, which have put additional pressure on costs as Polestar works to reduce its reliance on Chinese production.
Polestar has faced several setbacks in recent months, including delays in the rollout of its newest models and accounting misstatements that have significantly delayed the release of financial reports.
As Lohscheller prepares to take the helm, he will need to navigate these complex challenges while steering Polestar towards profitability and sustainable growth in an increasingly competitive EV market. His experience in both traditional automotive manufacturing and the EV startup world may prove invaluable as Polestar seeks to carve out its place in the evolving electric vehicle landscape.