US bans Polestar but not Volvo in baffling EV ruling

Connected Car ruling will come into effect in 2027

Anything with a link to China or Russia is in the spotlight

Volvo has managed to avoid the same fate

North American fans of beautifully minimal Scandinavian design will no longer be able to purchase one of Polestar’s innovative and stylish EVs as of next year, as a new Connected Vehicle Rule can prohibit the sale of items with a “sufficient nexus” to China or Russia in the US.

The final decision falls to the Bureau of Industry and Security, part of the US Department of Commerce, which declined to grant Polestar authorization to sell vehicles in the US from model year 2027, according to Electrek.

The rule, which was instituted during the final days of the Biden administration but kept under the Trump administration, centers around national security concerns, particularly with those brands controlled by, or subject to, the jurisdiction or direction of China or Russia.

Polestar, which has its headquarters in Gothenburg, Sweden, is majority owned by one of the largest automakers in China, Geely Auto, which also happens to own Volvo.

However, its Swedish sibling was granted a waiver in May to continue its sales in the US.

“Companies from these countries may be compelled to share data or allow remote access to connected vehicles in the United States,” the notice of the rule said, according to CNN.

But to add insult to injury, none of the Polestar models that are on sale in North America are assembled in China, with the Polestar 3 built in a Volvo plant in Charleston, South Carolina, and the Polestar 4 built in South Korea.

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The company has said that it will keep its 32 US-based dealerships open to continue offering aftercare and support to existing customers, as well as to clear any remaining inventory.

A statement released by the brand said existing Polestar owners and lease customers will “continue to receive the same level of support and access to service as they do today”.

Analysis: Causing more confusion for the EV market

Polestar likely won’t take the ruling to heart, seeing that the majority of its sales come outside of the US anyway, but the Department of Commerce’s decision to ban Polestar and not Volvo remains baffling.

Both brands share much of their basic platform and electrical architecture, while Polestar and Volvo’s infotainment systems are only really discernible by the fonts and graphics they use on-screen.

What’s more, both these brands run Android Automotive Operating Systems and have Google Maps installed natively for navigation, both of which were originally developed by US tech giants.

While the rule appears to have national security at its heart, it also just adds further confusion to a global automotive market that is struggling to keep up with the constantly-moving goalposts, both in terms of shifting emissions rulings and global trade legislation.

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Leon has been navigating a world where automotive and tech collide for almost 20 years, reporting on everything from in-car entertainment to robotised manufacturing plants. Currently, EVs are the focus of his attentions, but give it a few years and it will be electric vertical take-off and landing craft. Outside of work hours, he can be found tinkering with distinctly analogue motorcycles, because electric motors are no replacement for an old Honda inline four.