Newly Proposed Commerce Department Rules Could Prohibit Polestar from Operating In the U.S.

The U.S. federal government has been going hard on Chinese products lately, especially in the automotive sector. Following announcements of heavy tariffs and a proposed ban on Chinese hardware and software, Polestar is sounding the alarms. The Geely-owned automaker recently said the moves would “effectively prohibit” the sale of its vehicles in the U.S., which would also include the models it builds in South Carolina.

Polestar told the Commerce Department that a significant portion of its business operations are outside China, where it only has around 280 employees. The automaker said that the Department “should consider whether a rule that effectively shuts down the operations of a lawfully organized U.S. company with substantial U.S. investments and so many personnel and key decision-making units in friendly nations and the U.S. is appropriately tailored to address the stated national security concerns.”

If the proposal moves forward, it would also impact Volvo, which China’s Geely also owns. The rules also ruffled feathers at Ford Motor Company and General Motors, which were told by the Commerce Department that they would need to stop importing Chinese-built vehicles under the proposal.

The new rules have some room for debate, leading Ford to suggest that the Commerce Department clarify its position. The Blue Oval said it wants clarification that the import rule “does not turn on the place where a connected vehicle’s final assembly happens to occur” as long as they meet the new hardware and software requirements.

[Images: Polestar]

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