- Geely-owned Volvo received a waiver for America’s connected car rule.
- Announced last year, the rule aimed to prohibit cars and tech from China and Russia.
- Volvo said the decision was made after “constructive discussions” with US officials.
In the waning days of the Biden Administration, the Department of Commerce finalized a rule to “prohibit the sale and import of connected vehicle hardware and software systems, as well as completed connected vehicles” from China and Russia. This was done under the auspices of national security and the United States specifically pointed to China’s “cyber espionage and intrusion operations, which continue to pose a significant threat to U.S. critical infrastructure and public safety.”
At the time, the White House said the rule would “prohibit the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by entities with ties to the PRC or Russia.” This included connectivity systems and components such as Bluetooth, cellular, satellite, and Wi-Fi modules as well as automated driving systems. The software restrictions would go into effect for the 2027 model year, while hardware restrictions would follow for the 2030 model year.
More: US Finalizes Rule To Ban Chinese Cars And Tech
While that’s just a brief overview, Volvo can breathe a sigh of relief as they’ve been granted a “specific authorization” from the Office of Information and Communications Technology and Services. It’s effectively a waiver that prevents their vehicles and technology from being banned under the Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles rule.
Volvo said the move came after “constructive discussions with the US Department of Commerce and other US officials regarding Volvo Cars’ governance, technology and data security.” The automaker is owned by Geely and has been hammered by testy relations between Beijing and Washington.
Despite the headaches, Volvo said the authorization enables them to continue their growth plans in the United States. The automaker went on to note America is one of the brand’s largest markets and is home to a massive plant, which employs over 2,000 people and has received over $1.3 billion of investment.
The Charleston, South Carolina plant started production in 2017 and currently builds the Volvo EX90 and Polestar 3. Two more vehicles will be built there by 2030 including the XC60, which is scheduled to roll off the assembly line starting later this year.
