Swedish automaker Polestar, majority-owned by China’s Geely, has expressed concern over a proposed Biden administration rule that would prohibit the use of Chinese-made hardware and software in vehicles sold in the U.S., including those assembled domestically.
Polestar indicated that this rule, aimed at addressing national security concerns with connected vehicles, would prevent it from selling cars in the U.S., including models produced in South Carolina.
In comments to the U.S. Commerce Department, Polestar stressed that much of its operations are outside China, with a European- and U.S.-dominated leadership, and a workforce of 2,800 employees globally, including 280 in China.
Polestar urged the Commerce Department to consider whether a measure that could effectively halt the business of a company with significant U.S. investments aligns with national security objectives. The Commerce Department declined to comment on the proposal.
The proposed regulation follows an earlier Reuters report that only four Chinese-manufactured vehicle models are currently sold in the U.S., including Polestar’s Polestar 2 and Volvo’s S90 sedan.
Ford Motor has also responded to the rule, noting that it could impact the sale of vehicles produced by U.S. automakers’ foreign affiliates if assembly occurs in regions considered foreign adversaries.
Ford recommended that the rule should focus on the origin of vehicle components rather than the final assembly location to avoid restricting sales of compliant vehicles.
Source: Reuters
