Polestar partners with Geely's Meizu to build Chinese operating system

Brilliance China Automotive Holdings

19/06/2023 08:50

By Marie Mannes
       June 19 (Reuters) - Swedish electric vehicle (EV) maker
Polestar  PSNY.O  said on Monday it had formed a joint venture
with Xingji Meizu to build an operating system for Polestar cars
sold in China that will offer the latest smart technologies in
its vehicles.
    The venture represents a further push by the Geely group
 GEELY.UL  to adapt cars specifically for Chinese consumers.
Meizu is owned by Geely chairman Li Shufu, who is also one of
Polestar's largest investors and controls its largest
shareholder, Volvo Cars  VOLCARb.ST .
    Polestar, which currently makes all of its cars in China,
said the new operating system would be based on Xingji Meizu's
Flyme Auto system which it launched earlier this year, and would
link up with in-car apps and customers' mobile phones. 
    The Swedish group said it would own 49% of the JV and Xingji
Meizu 51%, providing $98 million and $102 million in funding
respectively. 
    Polestar CEO Thomas Ingenlath told Reuters he expected the
new software to be quickly integrated into its vehicles, while
the Google Auto system available in cars sold outside China
would remain unchanged.
     Xingji Meizu has grown over the last decade in its attempt
to become a Chinese rival to Android, but holds a marginal
market share.   
    Traditional carmakers have come under pressure from Chinese
EV makers offering lower prices and smart consumer-facing
technologies. 
    "We definitely struggle in being competitive in that
environment," Ingenlath said, adding that partnering with a
company closely related to its own owner would be a positive
step.
    Ingenlath said this enabled U.S.-listed Polestar to use
practically in-house software and cater directly to Chinese
buyers' tastes
    "This brings us in a completely different position, and puts
us on the same level as, if not even ahead of, our Chinese EV
competitors," he told Reuters. 

 (Reporting by Marie Mannes; Editing by Elaine Hardcastle and
Jan Harvey)
 ((Marie.mannes@thomsonreuters.com))