The U.S. Department of Commerce’s Bureau of Industry and Security has denied Polestar authorization to sell its 2027 models in the United States under the Connected Vehicle Rule, which restricts vehicles with foreign-tied connectivity and automated systems. Polestar, owned by the Chinese automotive company Geely, will still sell its current inventory of the Polestar 3 and 4 crossovers in the U.S. and provide customer support. The Connected Vehicle Rule aims to safeguard national security by preventing sensitive data from being handled by foreign adversaries, primarily China and Russia. Interestingly, Volvo, also under Geely’s ownership, has received authorization to sell connected vehicles in the U.S. In 2025, Polestar sold 5,384 cars in the U.S. while selling a total of 60,119 units worldwide.
Why It Matters
This development highlights the increasing scrutiny on foreign automotive companies operating in the U.S. market, particularly those linked to China and Russia. The Connected Vehicle Rule reflects broader national security concerns regarding data privacy and vehicle control systems. While Polestar’s sales in the U.S. are relatively modest compared to its global performance, the regulatory landscape is shifting, influencing business strategies for automotive manufacturers. The contrasting status of Volvo, which can sell connected vehicles, underscores the complexities of international automotive regulations and their implications for market competition.
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