US to ban sales of Swedish carmaker Polestar from 2027

Swedish electric car manufacturer Polestar is facing a ban on selling new vehicles in the United States from the 2027 model year. The decision stems from the U.S. Commerce Department's denial of the automaker's request to operate under the "connected vehicle rule." This regulation restricts vehicles incorporating Chinese-linked technology, such as Bluetooth, Wi-Fi, and cellular connectivity, citing concerns over potential collection of sensitive user data.

Polestar, which is controlled by Chinese group Geely, has its Polestar 3 model produced in Chengdu, China. The regulation, initially adopted in January 2025, is part of ongoing pressure from Washington on Chinese-linked brands. While Polestar is headquartered in Sweden, Geely's majority ownership made specific authorization necessary for U.S. market sales.

The company stated it will continue selling existing Polestar 3 and Polestar 4 units in the U.S. and will maintain service access for current owners. However, the ban casts doubt on the future of the Polestar 3, which is also manufactured in South Carolina. Volvo, a sister brand under Geely, reportedly received authorization to continue selling vehicles in the U.S., though it still needs to adapt its range to the new rule. The differing outcomes for Polestar and Volvo, both owned by Geely, remain unclear.