Automaker Polestar will not be allowed to sell its 2027 models and beyond in the US after the US Commerce Department’s Bureau of Industry and Security banned those sales due to concerns about connected technology in China. And the company has no plans to return.
The root of this issue is Polestar’s ownership of Volvo and Volvo’s parent company, Geely based in China.
The Swedish manufacturer of electric vehicles, which became a separate brand in 2017, revealed the ban in an SEC filing, which was combined with a press release this week announcing that it is shifting to Europe.
It said in its release that it will continue to sell existing stock of its Polestar 3 and Polestar 4 vehicles in the US and support customers through its service network.
A Polestar representative told CNET via email that, due to the Commerce Department’s ruling, the company has no plans to sell new cars in the US from the 2027 model year onward, including the planned Polestar 7.
The company markets the Polestar 7 as a premium compact SUV. It will be released in 2028.
The decision is not surprising: A 2024 letter from Polestar (PDF) to the Bureau of Industry and Security foreshadowed what would eventually happen. He said at the time that banning this organization could eventually lead the company to stop selling cars in America, even those produced in South Carolina.
The US ban has not been posted on the Commerce Department’s website or social media, but it coincides with the agency’s order to police technology from China that the government considers a potential security threat. This month, the department issued a $36 million fine against Bosch for exporting sensors and automotive software to Huawei.
However, in May, the Bureau of Industry and Security granted Volvo a special license to sell its cars in the US after the automaker said it had consulted with the department about its connected technology.
A representative for the Bureau of Industry and Security did not immediately respond to a request for comment.
US agencies are not just targeting the auto industry. The Federal Communications Commission targets consumer products including routes again drones with technology made in China.
Considering EVs in the US
Polestar is not one of the top 10 EV manufacturers, lagging behind major companies including Tesla, BYD and Volkswagen.
Electric vehicles make up only about 6.5 percent of the US auto market, according to industry watcher Edmunds. In the US, EVs are generally priced higher, too government discounts buying these types of cars is over.
With gas prices high this summer, consumers may give EVs another look, though worries are still there in terms of prices and ranges.
Some car manufacturers are trying to increase the appeal of electric cars with more affordable models. Slate is taking pre-orders with a basic, modular EV truck priced at $24,950 before delivery fees. Other EV models, such as The Chevrolet Boltcan be had for around $30,000.