Swedish Carmaker Polestar Recalls Nearly 32,000 Units Of Its Best-Selling EV In US, Canada

Swedish EV brand Polestar Automotive PSNY is recalling nearly 32,000 Polestar 2 vehicles in North America, including nearly 26,000 in the U.S. alone, citing issues that may prevent the rearview camera image from displaying.

What Happened: Certain 2021- 2024 model year Polestar 2 vehicles may have an issue where the infotainment head unit (IHU) software prevents the rearview camera image from displaying and increases the risks of a crash, the company said in a filing with U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA.)

The company aims to fix the issue with an over-the-air IHU software update. Polestar has also advised its sales and service points to halt delivery and check for affected vehicles in auction and inventory.

Polestar 2 is the car brand’s best-selling model and is manufactured in China.

Why It Matters: Polestar, controlled by China’s Geely, delivered about 13,000 cars globally in the second quarter, marking a jump of 80% as compared to the previous quarter. The company is now looking at an uptick in sales through the second half of the year with production of Polestar 3 in South Carolina slated to start at the end of summer.

For the quarter ended March 2024, the company reported an operating loss of $231.7 million, as compared to the loss of $219.9 million reported for the corresponding quarter of last year.

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