Volvo Automobiles reached an settlement with the Trump administration that exempts the automaker from a U.S. crackdown on Chinese language-connected car know-how.
The Swedish automaker, which is majority owned by China’s Geely Holding, mentioned Tuesday that it obtained particular authorization from the U.S. Division of Commerce to proceed importing and promoting autos with Chinese language linked automobile know-how in the USA. Related automobile tech entails the software program that covers all the things from syncing with telephones to some automated driving options. Bloomberg was first to report the particular authorization.
Volvo was banned below guidelines finalized by the Biden administration in January 2025 that blocked autos geared up with software program and {hardware} developed and maintained by Chinese language corporations over nationwide safety considerations. The rules kicked off with 2027 model-year autos geared up with software program developed and maintained by Chinese language corporations. One other ban that prohibits the import of auto linked {hardware} begins with 2030 model-year autos.
Volvo autos are primarily made in Sweden and imported to the USA, apart from the EX90, which is assembled on the firm’s manufacturing facility in South Carolina. However Volvo’s ties to China’s Geely — and its manufacturing operations within the nation — meant it could be banned below the brand new guidelines.
Volvo mentioned the approval adopted “constructive discussions” with the Commerce division and different U.S. officers concerning the corporate’s governance, know-how, and knowledge safety. The automaker mentioned it might probably now transfer ahead with its enlargement plans in the USA.
The automaker introduced in September 2025 plans to deliver two extra autos — the XC60 mid-size SUV and a brand new hybrid car — into manufacturing on the South Carolina manufacturing facility. In March, Volvo mentioned it would additionally deliver all manufacturing of the Polestar 3, an EV from its sister firm Polestar, to the U.S. manufacturing facility. The Polestar 3 is at the moment additionally produced in Chengdu, China.
The rule, generally known as “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles,” spends appreciable time on the specter of autos with automated driving programs developed by corporations with Chinese language ties.
Beneath the principles, Chinese language corporations can be prohibited from testing autonomous autos in the USA. At this time, a number of of those corporations together with Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide have permits to check their autonomous car know-how (with a human security operator behind the wheel) in California. TechCrunch has reached out to the Division of Motor Automobiles, the company that regulates AVs within the state, to study if these permits might be revoked.
Whenever you buy by way of hyperlinks in our articles, we may earn a small commission. This doesn’t have an effect on our editorial independence.
