Trump Admin permits Volvo to keep selling connected cars in U.S.
Original: Trump Admin permits Volvo to keep selling connected cars in the U.S.
Why This Matters
Sets precedent for how U.S. handles Chinese-owned automakers amid national security concerns
The Trump administration granted Volvo Cars a special exemption from the U.S. ban on Chinese-connected vehicle technology. The Swedish automaker, majority-owned by China's Geely Holding, received authorization from the Commerce Department to continue importing and selling vehicles with Chinese connected car technology in the United States.
Volvo Cars received specific authorization from the U.S. Department of Commerce to continue importing and selling vehicles with Chinese connected car technology, exempting it from rules finalized by the Biden administration in January 2025. The rules banned vehicles equipped with software and hardware developed by Chinese companies over national security concerns, starting with 2027 model-year vehicles. The ban would have affected Volvo due to its majority ownership by China's Geely Holding and manufacturing operations in China. Volvo said the approval followed 'constructive discussions' with the Commerce department regarding governance, technology, and data security. The automaker can now proceed with expansion plans including bringing XC60 SUV and hybrid vehicle production to its South Carolina factory, plus all Polestar 3 production to the U.S.