Polestar, an electric vehicle maker, is being forced out of the American market due to its ties to China, following a decision by the US Commerce Department. The company said the Commerce Department’s Bureau of Industry and Security denied the company an authorization to sell vehicles, starting with the 2027 model year, under a regulation known as the Connected Vehicle Rule.

National Security Concerns

The rule, instituted during the final days of the Biden administration and kept under the Trump administration, cites national security concerns to ban “connected vehicle manufacturers owned by, controlled by, or subject to the jurisdiction or direction of China or Russia, and vehicles using their covered software.”

Polestar is majority owned by Geely, a Chinese automaker, and its chairman Li Shufu. Geely also owns Volvo, which was granted a waiver in May. 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.

Polestar said it will continue to sell the existing stock of its Polestar 3 and Polestar 4 models in the US and will continue to support customers, including providing access to its service network. But the company said it will focus on future sales growth in Europe instead, where it already had 80% of its sales.

Original reporting: El Paso News (HLL/CB) — read the source article.