Polestar is outraged by a proposal from the US government which – if it comes to fruition – will de facto ban the brand's cars in the country.
The Chinese-controlled electric car manufacturer Polestar, headquartered in Gothenburg, faces a potentially devastating blow to its business in the United States.
New rules aimed at limiting Chinese technology in the country could result in an effective ban on Polestar's electric cars.
The rules, which take effect from 2027, ban the sale of cars with Chinese hardware or software. The reasoning is that these cars can pose a security risk, as they can potentially be remotely controlled or used to collect sensitive data from drivers.
Although the Polestar 3 is produced in the US alongside the Volvo EX90, it is still subject to the ban. The Polestar 2 and Polestar 4, which are produced in China, will also be subject to a 100 percent tariff.
Polestar has expressed its frustration with the proposal, arguing that it will hit a legally established US company with significant investments and employees in the US and allied countries.
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– Consideration should be given to whether a rule that effectively shuts down the operation of a legally organized US corporation with significant US investment and so many employees and key decision-making units in friendly nations and the US is tailored to meet the stated national security concerns , says Polestar, according to Reuters.
US Commerce Secretary Gina Raimondo underscored the need for the new rules by highlighting the potential risk of hostile tampering with choir uniforms.
"In extreme situations, a foreign adversary could shut down or take control of all of its convoys operating in the United States, all at the same time, causing crashes or roadblocks," she said.
The ban on Chinese hardware in the US, as described by Boosted, will not come into effect until 2030. Volvo Cars, which also has significant production in China, may also be affected by the new rules.
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