Volvo Automobiles reached an settlement with the Trump administration that exempts the automaker from a U.S. crackdown on Chinese language-connected car expertise.
The Swedish automaker, which is majority owned by China’s Geely Holding, stated Tuesday that it acquired particular authorization from the U.S. Division of Commerce to proceed importing and promoting autos with Chinese language related automotive expertise in the US. Related automotive tech entails the software program that covers every little thing 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 firms over nationwide safety issues. The rules kicked off with 2027 model-year autos geared up with software program developed and maintained by Chinese language firms. One other ban that prohibits the import of car related {hardware} begins with 2030 model-year autos.
Volvo autos are primarily made in Sweden and imported to the US, aside 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 stated the approval adopted “constructive discussions” with the Commerce division and different U.S. officers concerning the corporate’s governance, expertise, and knowledge safety. The automaker stated it will probably now transfer ahead with its growth plans in the US.
The automaker introduced in September 2025 plans to carry two extra autos — the XC60 midsize SUV and a brand new hybrid car — into manufacturing on the South Carolina manufacturing facility. In March, Volvo stated it’ll additionally carry all manufacturing of the Polestar 3, an EV from its sister firm Polestar, to the U.S. manufacturing facility. The Polestar 3 is presently additionally produced in Chengdu, China.
The rule, referred to as “Securing the Data and Communications Expertise and Companies Provide Chain: Related Automobiles,” spends appreciable time on the specter of autos with automated driving programs developed by firms with Chinese language ties.
Beneath the foundations, Chinese language firms could be prohibited from testing autonomous autos in the US. As we speak, a number of of those firms, together with Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide, have permits to check their autonomous car expertise (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.
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