Prestige Imports has taken Polestar to court. As reported by Automotive News and Inside EVs, the dealership accuses the Chinese manufacturer of violating New Jersey’s Franchise Practices Act. Polestar allegedly failed to provide the mandatory 60-day termination notice and did not offer sufficient justification for ending the business relationship. From model year 2027, Polestar will no longer be permitted to sell new vehicles in the USA due to the Connected Vehicle Rule. However, older models may still be sold.
Prestige Imports has challenged this reasoning. The dealership claims Polestar has been planning its US withdrawal for two years and used the Department of Commerce’s decision as a convenient exit strategy. The evidence cited is its corporate sister company, Volvo. Although Volvo is also under Geely’s ownership, it received an exemption. According to US Senator Bernie Moreno, Volvo met an extensive list of conditions to secure this exemption, while Polestar did not pursue this option. Sweden’s Minister for Foreign Trade, Benjamin Dousa, also stated that his government supported Volvo during the process. Polestar, however, apparently did not request similar assistance.
Whether this truly represents a long-planned exit will now be determined in court. There may, however, be a financial motive: Moreno claims Polestar incurred losses of up to $35,000 per vehicle sold in the USA. This figure has yet to be confirmed. What is certain is that the manufacturer has long since shifted its focus elsewhere. Around 80 per cent of its sales are generated in Europe. Perhaps the Connected Vehicle Rule was not the sole reason for the separation but rather an opportunity for a final “it’s not you, it’s me” moment.
