Trump Admin permits Volvo to keep selling connected cars in the U.S.
Source: TechCrunch
Volvo Cars reached an agreement with the Trump administration that exempts the automaker from a U.S. crackdown on Chinese‑connected vehicle technology.
Background: U.S. ban on Chinese‑connected vehicle technology
The Biden administration finalized rules in January 2025 that block vehicles equipped with software and hardware developed and maintained by Chinese companies over national‑security concerns. The rules, which take effect for 2027 model‑year vehicles (software) and 2030 model‑year vehicles (hardware), were issued under the “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles” regulation【https://www.federalregister.gov/documents/2025/01/16/2025-00592/securing-the-information-and-communications-technology-and-services-supply-chain-connected-vehicles】.
Volvo receives exemption
Volvo, majority‑owned by China’s Geely Holding, obtained specific authorization from the U.S. Department of Commerce to continue importing and selling vehicles with Chinese‑connected‑car technology in the United States. Bloomberg first reported the special authorization.
The exemption follows “constructive discussions” with the Commerce Department and other U.S. officials regarding Volvo’s governance, technology, and data security. With the approval, Volvo can proceed with its expansion plans in the United States.
Future production plans
- In September 2025, Volvo announced plans to bring two additional models—the XC60 midsize SUV and a new hybrid vehicle—to production at its South Carolina factory.
- In March 2025, Volvo said it will move all production of the Polestar 3 (an EV from its sister company Polestar) to the U.S. plant. The Polestar 3 is currently also produced in Chengdu, China【https://www.volvocars.com/intl/media/press-releases/14D56D0E2FDC937B/】.
Details of the rule
The regulation emphasizes the threat posed by automated‑driving systems developed by companies with Chinese ties. Under the rules, Chinese companies are prohibited from testing autonomous vehicles in the United States.
Testing permits for Chinese AV companies
Several Chinese firms—Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide—currently hold permits to test autonomous‑vehicle technology (with a human safety operator) in California. TechCrunch has reached out to the California Department of Motor Vehicles to determine whether these permits will be revoked.
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