US bans Polestar but not Volvo in baffling EV ruling data security fears force exit for premium brand, while its sister company gets a green light

Date:
Mon, 29 Jun 2026 19:00:00 +0000

Description:
New US rule will ban Polestar EVs over data security fears, even though none of the EVs it sells in North America are built in China.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Connected Car ruling will come into effect in 2027 Anything with a link to China or Russia is in the spotlight Volvo has managed to avoid the same fate North American fans of beautifully minimal Scandinavian design will no longer be able to purchase
one of Polestars innovative and stylish EVs as of next year, as a new Connected Vehicle Rule can prohibit the sale of items with a sufficient nexus to China or Russia in the US.

The final decision falls to the Bureau of Industry and Security, part of the US Department of Commerce, which declined to grant Polestar authorization to sell vehicles in the US from model year 2027, according to Electrek . The rule, which was instituted during the final days of the Biden administration but kept under the Trump administration, centers around national security concerns, particularly with those brands controlled by, or subject to, the jurisdiction or direction of China or Russia. Latest Videos From Watch full video here:

Polestar , which has its headquarters in Gothenburg, Sweden, is majority owned by one of the largest automakers in China, Geely Auto , which also happens to own Volvo.

However, its Swedish sibling was granted a waiver in May to continue its
sales in the US. You may like China's carmakers want to push into Europe via underused factories Why new FCC rules could leave millions stuck with outdated, insecure hardware Netgear routers seemingly wont be banned in the
US after all and this just proves the ban was never about security

Companies from these countries may be compelled to share data or allow remote access to connected vehicles in the United States, the notice of the rule said, according to CNN .

But to add insult to injury, none of the Polestar models that are on sale in North America are assembled in China, with the Polestar 3 built in a Volvo plant in Charleston, South Carolina, and the Polestar 4 built in South Korea. Get daily insight, inspiration and deals in your inbox Sign up for breaking news, reviews, opinion, top tech deals, and more. Contact me with news and offers from other Future brands Receive email from us on behalf of our
trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

The company has said that it will keep its 32 US-based dealerships open to continue offering aftercare and support to existing customers, as well as to clear any remaining inventory.

A statement released by the brand said existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today. Analysis: Causing more confusion for the EV market (Image credit: Polestar) Polestar likely wont take the ruling to heart,
seeing that the majority of its sales come outside of the US anyway, but the Department of Commerces decision to ban Polestar and not Volvo remains baffling. What to read next I've driven the new Xpeng G6 and it's now more of a Tesla rival than ever Tesla's controversial self-driving tech just got a green light in Europe Chinese cellular modules could be included in new expansion of federal restrictions

Both brands share much of their basic platform and electrical architecture, while Polestar and Volvos infotainment systems are only really discernible by the fonts and graphics they use on-screen.

Whats more, both these brands run Android Automotive Operating Systems and have Google Maps installed natively for navigation, both of which were originally developed by US tech giants.

While the rule appears to have national security at its heart, it also just adds further confusion to a global automotive market that is struggling to keep up with the constantly-moving goalposts, both in terms of shifting emissions rulings and global trade legislation. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/vehicle-tech/hybrid-electric-vehicles/us-bans-polest ar-but-not-volvo-in-baffling-ev-ruling-data-security-fears-force-exit-for-prem ium-brand-while-its-sister-company-gets-a-green-light


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