The US Commerce Department has denied Polestar authorization to sell vehicles starting with the 2027 model year as part of a broader crackdown on Chinese electric vehicles. The Connected Vehicles Rule, adopted in January 2025 under President Joe Biden and maintained by President Donald Trump, restricts the import and sale of cars with connected-vehicle technology linked to China due to national security concerns.
Key Takeaways
The US Commerce Department denied Polestar authorization to sell vehicles from the 2027 model year onward due to its Chinese ownership links. This decision is part of broader restrictions on Chinese EVs for national security reasons.
- Polestar will stop selling new models in the US starting with the 2027 lineup
- The ban affects all connected vehicle technology linked to China, including Bluetooth and Wi-Fi
- Volvo Cars received authorization but must meet rule specifications across its US lineup
- Polestar's sales have been sluggish in the US, with only 6% of first-quarter sales coming from there
Source Claims Check
High Consensus| Claim | Status | Reason | |
|---|---|---|---|
| Polestar Ban Start Year | Broad Agreement | ban starts with the 2027 model year | |
| Connected Vehicle Technology Restrictions | Broad Agreement | restricts Bluetooth, Wi-Fi, cellular connectivity and some satellite communications technologies li… | |
| Polestar Sales In The Us | Broad Agreement | only 6% of first-quarter sales came from the United States compared with 78% from Europe. |
Polestar will continue selling existing Polestar 3 and Polestar 4 SUVs in the US and maintain its service network. The company's CEO Michael Lohscheller stated that the automotive industry is entering a new phase based on regional dynamics, with Europe becoming their largest growth engine. This decision comes as Polestar has struggled to turn a profit and faces growing competitive pressures in the US market.
The ban affects all connected vehicle technology linked to China, including Bluetooth, Wi-Fi, cellular connectivity, and some satellite communications technologies. Volvo Cars, which shares ownership with Polestar through Geely Holding, received authorization but must meet rule specifications across its US lineup. The decision raises questions about the future of the Polestar 3, the only model manufactured in the United States.
Polestar's sales have been sluggish in the US, with only 6% of first-quarter sales coming from there compared to 78% from Europe. The company has pivoted towards Europe and plans to manufacture the Polestar 7 SUV at Volvo's planned factory in Slovakia. Despite the setback, Polestar expects deliveries of a new Polestar 4 variant later this year followed by a revamped version of the sedan Polestar 2 in 2027.
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