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Polestar launching in French market after expansion delays

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Orders open on Wednesday with first deliveries due in

October

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Aims for France to become one of top European markets, UK

currently largest

By Gilles Guillaume

PARIS, June 11 (Reuters) - Swedish premium carmaker

Polestar will start delivering its electric vehicles in

France this year with the goal of making it one of its three

main European markets, its top executive for the country told

Reuters.

Confronted with a cash crunch, tariff pressures, and a broad

slowdown in EV demand, the company, majority-owned by China's

Geely Holding, has decided to focus its efforts more on

profitable Europe.

Even there, though, its initial rapid expansion has stalled,

with the last new market launches dating back to 2022.

"We are a young company, given we have had a very steady

rhythm of launches and market openings, it is good too, at some

point to pause for a moment, before launching again a cycle of

market openings", Stephane Le Guevel, managing director for

Polestar France, said.

"We have decided this year to concentrate on France and to

restart the tempo next year. We have talked about Central

Europe and LatAm", he said.

While the Sweden-based automaker has attempted to conquer the

U.S. and Chinese markets, its premium cars have been better

received in Europe, which accounts for 75% of its sales.

Le Guével said that the automaker hoped France would, over

the medium term, go on to become one of its top-selling markets

in Europe, currently being Britain and Sweden.

Polestar has tried to take on other premium brands, such as

Mercedes, BMW, Audi, and Tesla, which it targeted in national ad

campaigns seeking to entice Tesla owners to switch to Polestar.

But its expansion has been on hold since it launched in Spain,

Portugal and Italy about three years ago.

In France, Polestar will start taking orders for its 2, 3 and 4

models on Wednesday, at starting prices ranging from 46,800

euros ($53,474) to 79,800 euros ($91,180). The first French

showroom will open in Le Mans in July and first deliveries are

expected from October.

The company plans to have a robust servicing network and

dedicated selling points still relying on its former owner Volvo

Cars, which continues to manufacture some Polestar models.

The company's French launch has been delayed by a complaint

filed by PSA - now part of Stellantis ( STLA ) - arguing the

Polestar logo looked too much like the DS brand logo.

Both parties reached an agreement in 2022 without disclosing

its financial details.

($1 = 0.8752 euros)