2023-06-20 06:56:44 ET
Polestar Automotive Holding ( NASDAQ: PSNY ) announced on Tuesday that its UK subsidiary is entering into a strategic joint venture for the China market with the technology company Xingji Meizu Group.
The new joint venture is expected to strengthen Polestar’s ( PSNY ) offerings in the Chinese electric vehicle market by combining the company's capabilities within design and performance with the software and consumer electronics hardware development expertise of Xingji Meizu.
The joint venture will develop Xingji Meizu’s existing FlyMe Auto technology platform into a seamless operating system for Polestar ( PSNY ) cars sold in China, including in-car apps, streaming services, and intelligent vehicle software. The platform will also feature mobile and augmented reality devices as part of the digital ecosystem. Polestar ( PSNY ) expects to transfer around 130 commercial staff in China to the new company, which will be the sole authorized Polestar sales and service entity in China.
The terms of the deal call for an ownership stake of 49% for Polestar ( PSNY ) in the joint venture company equity, with the remaining 51% to be owned by Xingji Meizu.
Xingji Meizu will arrange for the joint venture’s future financing beyond the initial capital provided.
Shares of Polestar Automotive ( PSNY ) moved up 0.50% in premarket trading on Tuesday.
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Polestar enters into strategic joint venture in China to grow software capabilities