Ford is seeking federal approval to continue selling certain models in the U.S. that contain software content from China.
The details: The request, driven by the U.S. Commerce Department’s ban on Chinese connected-vehicle software, is critical for Ford to continue selling the Lincoln Nautilus SUV in the U.S., according to Reuters.
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The Nautilus, built at the Changan Ford assembly plant in Hangzhou, is one of the few China-made vehicles sold in the U.S. before the restrictions.
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While the SUV’s software is developed in the U.S., it is installed in China, requiring government authorization for continued U.S. sales.
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The software restrictions take effect with the 2027 model year, while separate hardware restrictions begin with the 2030 model year.
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Ford expects to begin importing 2027 model-year Nautilus vehicles in January, giving the automaker roughly six months to secure approval.
Why it matters: Ford’s request highlights the growing complexity of connected-vehicle regulations and the challenges automakers face in managing global software and supply chains.
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Between the lines: Ford is not alone in navigating the new restrictions, with the hardware rules already having broader implications across the industry.
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General Motors has directed some suppliers to remove Chinese components from their supply chains by 2027.
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Volvo Cars, which is majority-owned by China’s Geely, said that despite receiving government authorization, all vehicles it sells in the U.S. must still comply with the rule’s requirements.
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A supplier group warned the rules could complicate efforts to separate software and hardware developed by global teams, per Reuters.
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Tiremaker Pirelli has warned that one of its products could be banned because of its large Chinese shareholder.
Bottom line: Ford’s effort to secure an exemption underscores how technology regulations are increasingly influencing the automotive industry, which could have longer-term implications for model availability, inventory mix, and future product strategies.
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