Volvo Vehicles reached an settlement with the Trump administration that exempts the automaker from a U.S. crackdown on Chinese language-connected automobile know-how.
The Swedish automaker, which is majority owned by China’s Geely Holding, mentioned Tuesday that it obtained particular authorization from the U.S. Division of Commerce to proceed importing and promoting automobiles with Chinese language related automobile know-how in the USA. Related automobile tech entails 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 underneath guidelines finalized by the Biden administration in January 2025 that blocked automobiles outfitted with software program and {hardware} developed and maintained by Chinese language firms over nationwide safety issues. The rules kicked off with 2027 model-year automobiles outfitted with software program developed and maintained by Chinese language firms. One other ban that prohibits the import of auto related {hardware} begins with 2030 model-year automobiles.
Volvo automobiles are primarily made in Sweden and imported to the USA, excluding 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 might be banned underneath the brand new guidelines.
Volvo mentioned the approval adopted “constructive discussions” with the Commerce division and different U.S. officers concerning the corporate’s governance, know-how, and information safety. The automaker mentioned it will probably now transfer ahead with its enlargement plans in the USA.
The automaker introduced in September 2025 plans to convey two further automobiles — the XC60 mid-size SUV and a brand new hybrid automobile — into manufacturing on the South Carolina manufacturing facility. In March, Volvo mentioned it should additionally convey all manufacturing of the Polestar 3an EV from its sister firm Polestar, to the U.S. manufacturing facility. The Polestar 3 is at present additionally produced in Chengdu, China.
The rule, generally known as “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles,” spends appreciable time on the specter of automobiles with automated driving techniques developed by firms with Chinese language ties.
Underneath the foundations, Chinese language firms can be prohibited from testing autonomous automobiles in the USA. As we speak, a number of of those firms together with Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide have permits to check their autonomous automobile 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 can be revoked.
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