Feds Killed Polestar and Spared Volvo. That Should Terrify You

Federal connected-vehicle rules have effectively halted Polestar’s path to new U.S. sales, while sparing Volvo, according to reporting described in the article. The U.S. Department of Commerce’s Bureau of Industry and Security denied Polestar authorization under the Connected Vehicle Rule for sales starting with model year 2027. The rationale cited is Polestar’s ownership structure: it is a subsidiary of Geely, a Chinese automaker, while Volvo—also owned by Geely—received authorization in May. The article says the reasoning behind the different outcomes is unclear, citing statements from a Volvo spokesperson who said they had no insight into Polestar’s approval process. Polestar said it had announced a February reboot plan and moved Polestar 3 production from Chengdu, China to Volvo’s Ridgeville, South Carolina plant to avoid tariffs, meaning the model’s U.S. future is now uncertain. Volvo said investments announced for its Charleston plant remain on track. The piece also references how other Chinese brands seek entry but face U.S. barriers.