Polestar is concerned about a potential sales ban in the United States

Polestar has raised alarms regarding a potential US government regulation that could entirely prohibit the sale of its vehicles in the United States, according to a report by Reuters. The Swedish automaker, which originated from Volvo and is predominantly owned by China's Geely Group, faces risks from a proposal by US authorities aimed at banning Chinese automotive technology on national security grounds. Should this regulation be implemented, it would impact not only Polestar vehicles imported from China but also those produced in South Carolina.

 

 

In a communication to the Department of Commerce, Polestar urged the government to reassess the extent of the proposed regulation. This order would restrict Polestar from providing vehicles equipped with Chinese hardware or software in the United States, potentially leading to serious repercussions for the company. Polestar highlighted that the majority of its operations are based outside of China, with seven of its ten board members hailing from Europe or the United States. The managing director is of German nationality, and merely 280 out of the company's 2,800 global employees are located in China.

 

 

Polestar has expressed concerns that this extensive regulation would significantly impact the investments and operations of the US-registered company. A representative from the Commerce Department chose not to address Polestar's concerns. Nonetheless, Polestar is not the sole entity impacted by the proposed regulations. In May, Reuters indicated that four models from the Chinese manufacturer would be available in the US market, including the Polestar 2 and the Volvo S90. Last month, the Commerce Department noted that the directive would also have implications for General Motors and Ford, as both automakers import vehicles from China to the United States.

 

 

Ford issued a statement to the Commerce Department, seeking clarification regarding the order. The company expressed concern that the rule might be construed in a way that would prevent American-made vehicles produced in China from being imported, despite their compliance with U.S. technology and safety standards. Ford encouraged the business community to restrict the ban to technical specifications related to hardware and software.