Polestar Says Biden's China Tech Ban Will Kill Its Business

A new rule could ban cars with certain Chinese technology from American roads, even ones built in the US.

2024 Polestar 2

Anthony Alaniz

By: Anthony Alaniz

Oct 30, 2024 at 12:13pm ET

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Polestar says that a proposed rule to ban connected Chinese cars would prevent it from selling in America.
The automaker highlights issues with the rule's broad language.
Other automakers, including Ford, Honda, and Tesla, submitted comments concerning the rule's scope and timeline.

Last month, the US Commerce Department proposed a new rule prohibiting the sale and import of connected cars from China and Russia into the United States. If it passes, Polestars says the rule could prevent it from selling the vehicles it builds in South Carolina in America.

Polestar, in a submitted comment to the department, said that the proposed rule as drafted "would effectively prohibit Polestar from selling its cars in the United States." The automaker highlighted its concerns with the rule's broad definitions, proposing the agency narrow the scope of the components and systems that would be included in the ban.

Ford echoed similar concerns in its comment about the wording, saying, "That certain language in the proposed rule could be interpreted in an overly broad and unnecessarily expansive manner." It could prevent automakers that build cars in China from selling them here—like the Lincoln Nautilus, which the Blue Oval builds in the People's Republic.

Nissan, Hyundai Motor Group, Volkswagen Group of America, Volvo, and Tesla also submitted comments. All proposed the agency better define the scope of the rules and refine the language to improve clarity.

Many also took issue with the proposed timeline. As written, the rule's software prohibitions would take effect for the 2027 model year, while the hardware restrictions would kick in for 2030. That's too soon, according to automakers. Usually, they design new products three to five years before production starts.

HMG said the limited timeline would prevent companies from complying with the requirements. Honda said the industry would need time to conduct proper testing and validation to limit "the potential for creating other safety vulnerabilities." VW asked the agency to delay implementing the hardware ban until 2031 to give it time to comply.

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The newly proposed rule is just the latest in a series of legislative and policy moves intended to protect US national security as connected cars that collect troves of information hit American roads.

You can read all the comments here, including ones from Lucid, Lotus, and Rivian, and the proposed rule in the Federal Register.

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Source: US Department of Commerce via Reuters

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