Volvo Cars has been approved to continue importing vehicles with “connected car” technology into the U.S., avoiding a key restriction aimed at blocking Chinese vehicles and components from entering the market.
The details: The Swedish automaker, majority owned by China’s Geely Holding, received authorization from the U.S. government to continue selling vehicles in the U.S. despite a Department of Commerce rule targeting connected cars and components from China, Yahoo Finance reported.
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The rules, which took effect March 17, 2025, restrict the import and sale of connected vehicles using software from China and Russia beginning with the 2027 model year.
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The Commerce Department regulations also ban hardware from the two countries starting with the 2030 model year.
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Volvo imports all of its U.S.-market vehicles from Europe except the EX90 electric SUV, which is assembled in South Carolina, Reuters reported.
What they’re saying: “Given our ownership, Volvo Car USA was required to follow a process with the U.S. Department of Commerce to obtain a specific authorization for the continued import and sale of connected cars in the U.S.,” the company said, per Reuters. “With this specific authorization, Volvo Cars can continue its growth plans in the United States.”
Why it matters: Volvo’s approval highlights the growing complexity surrounding connected vehicle regulations and Chinese ties in the auto industry, signaling that evolving trade and technology rules—and other geopolitical factors—could increasingly influence product availability and sourcing.
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Between the lines: Volvo’s approval comes as efforts to restrict Chinese vehicles and components in the U.S. continue to intensify.
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A bipartisan bill introduced ahead of President Donald Trump’s meeting with Chinese President Xi Jinping seeks to ban Chinese vehicles and parts from entering the U.S. market.
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The legislation—introduced by Sens. Bernie Moreno, R-Ohio, and Elissa Slotkin, D-Mich.— builds on existing Commerce Department restrictions targeting connected vehicles and components.
What they’re saying: “Knowing when that person arrives, where they leave, where they go afterwards, can you imagine the national security implications of that? Like, why would we ever allow that?,” said Bernie Moreno, speaking on the Car Dealership Guy podcast.
Bottom line: Regulatory scrutiny around connected vehicle technology and Chinese involvement in the auto industry is unlikely to ease. For dealers, policy shifts tied to sourcing and data security could become a bigger factor in future inventory and sales dynamics.
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