In 2015, Volvo purchased Polestar Performance, a motorsports company who had collaborated with Volvo on production car models since 2009. Now, the Polestar brand has been spun off by the company into its luxury-performance line, an effort to compete with BMW’s ‘M’ series, the Mercedes-AMG brand, and Audi’s newly launched ‘Audi Sport’ line, which will handle that company’s R and RS level vehicles.

Unlike the high-end brands offered by those automakers, though, Volvo’s Polestar cars will be labeled only as Polestar, identifiable as Volvo parent-company products only by virtue of the distinctive Volvo grille emblem, the so-called ‘iron mark.’ Otherwise, the company wishes for the Polestar brand to be exclusive, suggesting independent R&D and racetrack associations. And Volvo will continue to expand the use of Polestar as a brand enhancement for existing Volvo production cars.

Two of those models—the popular XC60 and XC90 crossovers—were recently revealed as Polestar-tuned versions; the higher-performance crossover vehicle, a family car that’s also a pleasure to drive, continues to expand as a market, with Audi, BMW, and Porsche models flying out of showrooms. Toss in a hybrid powertrain, and you’ve got a potential winner.

Polestar squeezed the engine of the XC60 T8 to push 421 horses, making it the most powerful Volvo production car ever produced. Moreover, while the Volvo brand has never been generally associated with attractive fuel economy numbers, the hybrid design allows for a 28-mile electric-only range, and an outstanding emissions rating which puts the car at the top of its class.

The Polestar-treated powertrain gives the gearbox improved response time as well, and provides improved gear-hold when cornering to keep the car more stable during higher-speed turning. The gearshift points have been calibrated to align with the tuned engine.

For specifically Polestar brand models, the first is rumored to be revealed officially this September, and it looks like the brand is entering the luxury-performance sedan market with a splash. A 600 horsepower monster, the touring car will also feature a hybrid powertrain, a very attractive power-to-weight ratio by way of extensive use of carbon fiber, and broad customization options.

The Polestar sedan, while expected to be marketed as a Polestar brand product, could use an existing Volvo model platform. Polestar is expected to reveal a second brand-specific model next year.