- The regulations on connected cars will come into force in 2027
- Everything that has a link with China or Russia is in the spotlight
- Volvo has managed to avoid the same fate
North American fans of beautiful minimalist Scandinavian design will no longer be able to purchase one of Polestar’s innovative and stylish electric vehicles starting next year, as a new connected vehicle rule may prohibit the sale of items with a “sufficient nexus” to China or Russia in the US.
The final decision rests with the Bureau of Industry and Security, part of the US Department of Commerce, which refused to grant Polestar authorization to sell vehicles in the US starting with the 2027 model year, according to Electrek.
The rule, which was instituted during the waning days of the Biden administration but continued under the Trump administration, focuses on national security concerns, particularly with those brands controlled by or subject to the jurisdiction or direction of China or Russia.
Polestar, which is based in Gothenburg, Sweden, is majority owned by one of China’s largest automakers, Geely Auto, which also owns Volvo.
However, its Swedish brother was granted an exemption in May to continue sales in the United States.
“Companies in these countries may be required to share data or allow remote access to connected vehicles in the United States,” the rule notice said, according to CNN.
But to add insult to injury, none of the Polestar models on sale in North America are assembled in China: the Polestar 3 is built at a Volvo plant in Charleston, South Carolina, and the Polestar 4 is built in South Korea.
The company has said it will keep its 32 US-based dealerships open to continue offering after-sales care and support to existing customers, as well as to liquidate any remaining inventory.
A statement issued by the brand said that existing Polestar owners and leasing customers “will continue to receive the same level of support and access to service that they receive today.”
Analysis: causing more confusion in the electric vehicle market
Polestar likely won’t take the decision seriously since most of its sales occur outside the US anyway, but the Commerce Department’s decision to ban Polestar and not Volvo remains baffling.
Both brands share much of their basic platform and electrical architecture, while the Polestar and Volvo infotainment systems are only really discernible by the fonts and graphics they use on the screen.
What’s more, both brands run Android automotive operating systems and have Google Maps natively installed for navigation, both of which were originally developed by American tech giants.
While the rule appears to have national security at its center, it also adds more confusion to a global automotive market that is struggling to keep up with ever-moving targets, both in terms of changing emissions standards and global trade legislation.
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