Volvo buys Polestar brand

Volvo is preparing a hybrid-powered range of high-performance cars after wholly acquiring its official tuning arm, Polestar.

The Swedish car maker confirmed it has taken over the previously private-owned division, in much the same way that Mercedes-Benz acquired AMG more than a decade ago.

It did not release details on the purchase price but said that all existing Polestar employees will become Volvo workers and that the Polestar racing team that currently competes in the Swedish Touring Car Championship will remain under the ownership of company founder Christian Dahl and be renamed in due course.

The move, however, is intended to strengthen its range of high-performance vehicles which was kick-started in Australia with the S60 sedan and has subsequently expanded to include a V60 wagon as well as upgrade kits for other Volvo variants. Volvo did not reveal any details of its future strategy but indicated the next-generation of go-fast models will employ the company's twincharged plug-in hybrid four cylinder technology that will arrive in Australian showrooms as part of the the new XC90 SUV line-up later this year.

The 2.0-litre four cylinder employs both a supercharger and turbocharger, as well as an electric motor powered by a battery pack, to generate power outputs up to 250kW. It is expected to be tuned to generate more power specifically for Polestar variants that is likely to include its small V40 hatch and XC90 SUV next, with likely extensions coming in the all-new S90 luxury sedan and next-generation S60 and V60 twins.