Polestar has been barred from selling new 2027 model-year vehicles in the US because the US Department of Commerce has refused to grant it an exemption from the Connected Vehicle Rule.
Under the Connected Vehicle Rule, Chinese and Russian-owned or controlled manufacturers are prohibited from knowingly selling 2027 model-year connected vehicles in the US. The US Department of Commerce’s Bureau of Industry and Security announced its decision to bar Polestar just weeks after granting Volvo an exemption.
Both companies are controlled by the Geely Holding Group in China, despite Polestar being headquartered in Sweden and building cars, along with Volvo, in a Ridgeville, South Carolina plant.
According to Polestar CEO Michael Lohscheller, the company will continue to invest in markets in Canada, Eastern Europe, Latin America and Southeast Asia, and plans to manufacture Polestar 7 in Europe.
The Connected Vehicle Rule will see software restrictions in effect with 2027 model-year vehicles, while hardware rules will take effect at a later date. Polestar’s existing US stock of the Polestar 3 and the Polestar 4 will continue to be sold until inventory runs out.
