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Manila Bulletin devider Drive devider US bans Polestar from selling cars in their country

US bans Polestar from selling cars in their country

Geely-owned brand to end US vehicle sales in 2027

Published Jul 8, 2026 02:01 pm

At A Glance

  • Polestar has been banned from selling vehicles in the US from the 2027 model year onwards.
  • The United States' Department of Commerce's Bureau of Industry and Security has enforced the ban under the new 'Connected Vehicle Rule' citing its ownership by a Chinese company.
Polestar 3 Model Year 2026
Polestar 3 Model Year 2026
Polestar, the former performance division of Volvo that is now its own automotive brand, has been banned from selling vehicles in the US from the 2027 model year onwards.
The ban was implemented by the United States’ Department of Commerce’s Bureau of Industry and Security under the new ‘Connected Vehicle Rule.’ This rule restricts the sale of new cars with both hardware and software linked to China or Russia. Polestar is owned by Geely, however none of the models sold in the US are built in China. Polestar even has a manufacturing facility for one model in South Carolina. The other US-bound models are built in South Korea. Nonetheless, even models built in Europe and the US will not be allowed to be sold past 2027.
None of Polestar’s vehicles sold in the United States are built in China. The Polestar 3 is built in a Volvo plant in Charleston, South Carolina, while the Polestar 4 is built in South Korea.
The US’s Bureau of Industry and Security said that “these transactions pose national security risks, as companies from these countries may be compelled to share data or allow remote access to connected vehicles in the United States.”
In response to the news, Polestar has said that it will continue to sell its existing stock of vehicles and will support customers with servicing after it withdraws from the market. Nonetheless, Polestar does not appear to be bothered by this development much. The US only accounts for just 6% of Polestar’s retail sales.
“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year,” said Michael Lohscheller, Polestar CEO. “In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America, and Canada.”
Polestar is majority owned by Geely, a Chinese automaker. Geely also owns Volvo, which was granted a waiver in May.
Volvo’s exemption
Under the waiver, Volvo Car USA was required to follow a process with the US Department of Commerce to obtain a specific authorization for the continued import and sale of connected cars in the US. The process is carried out on a case-by-case basis and the issuance of a specific authorization follows constructive discussions with the US Department of Commerce and other US officials regarding Volvo Cars' governance, technology and data security.
Volvo, by contrast, counts the US as one of its largest markets. It has a
At the end of September 2025, Volvo Cars announced additional investments in South Carolina to bring two additional vehicles into production before 2030. It has a manufacturing facility in Charleston, South Carolina (where the single Polestar model is also made) where it has invested over 1.3 billion USD to date, creating over 2,000 jobs.

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