Volvo Vehicles 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, stated Tuesday that it acquired particular authorization from the U.S. Division of Commerce to proceed importing and promoting autos with Chinese language related automobile know-how in the US. Related automobile tech includes 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 issues. 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 related {hardware} begins with 2030 model-year autos.
Volvo autos are primarily made in Sweden and imported to the US, 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 stated the approval adopted “constructive discussions” with the Commerce division and different U.S. officers relating to the corporate’s governance, know-how, and knowledge safety. The automaker stated it could possibly now transfer ahead with its growth plans in the US.
The automaker introduced in September 2025 plans to convey 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 would additionally convey 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 Info and Communications Know-how and Providers Provide Chain: Related Autos,” spends appreciable time on the specter of autos with automated driving techniques developed by corporations with Chinese language ties.
Beneath the foundations, Chinese language corporations can be prohibited from testing autonomous autos in the US. Right this moment, 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 Autos, the company that regulates AVs within the state, to study if these permits will likely be revoked.
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