Polestar fears US sales ban

Polestar has expressed concern that a proposed US government rule could completely block sales of its cars in the US, Reuters reported. The Swedish brand, which grew out of Volvo cars and is now mostly owned by China's Geely Group, is threatened by a proposal by US officials to ban the use of Chinese car technology on national security grounds. If the rule goes into effect, not only Polestar models imported from China will be affected, but also models manufactured in the United States in South Carolina.

In a statement to the Department of Commerce, Polstar called on the government to reconsider the scope of the provision. The proposed order would prevent Polestar from supplying cars with Chinese hardware or software in the U.S., which would have significant consequences for the company. Polestar emphasized that most of its operations are outside of China and that seven out of 10 board members are from Europe or the US. The managing director is German, and only about 280 of the 2,800 employees worldwide work in China.

Polestar warns that such a far-reaching rule would also severely affect the US-registered company's investments and operations. A Commerce Department representative declined to comment on Polastar's objections. However, Polestar is not the only one affected by the planned regime. Back in May, Reuters reported that a total of four models from the Chinese manufacturer will be offered in the US, including the Polestar 2 and Volvo S90. The Commerce Department said last month that the order would also affect General Motors and Ford, as both companies import cars from China to the United States.

Ford commented in a statement to the Commerce Department and called for clarification of the order. The company sees a risk that the rule could be interpreted so that cars produced by American manufacturers in China are also excluded from imports, even if they meet US standards for technology and safety. Ford urged the business sector to limit the ban to technical standards for hardware and software.

Source: Reuters – Polestar says the Biden proposal would 'effectively ban' sales of its cars in the US