Volvo Cars wins U.S. approval to keep importing vehicles with 'connected car' technology
Volvo Cars received U.S. government approval to continue importing vehicles with Chinese 'connected technology' despite broader restrictions on Chinese-made vehicles, allowing it to proceed with its U.S. growth plans. The Commerce Department granted the authorization after reviewing Volvo’s governance, technology, and data security measures, though stricter rules are still under consideration by lawmakers.
Volvo Cars, majority owned by China’s Geely Holding, secured U.S. government approval on Tuesday to keep selling vehicles equipped with Chinese-developed 'connected technology' in the U.S. market. The decision comes despite broader Biden administration rules finalized in January 2025, which ban nearly all Chinese-made cars and trucks, including most Chinese software in vehicles starting with the 2027 model year. The Commerce Department granted Volvo a specific exemption after reviewing its governance, technology, and data security practices. This authorization enables Volvo to continue its expansion plans in the U.S., including the production of a new hybrid model by the end of the decade at its South Carolina plant. Volvo announced in September it would begin producing a hybrid model tailored for the U.S. market, aiming to boost capacity at its South Carolina facility. Earlier this year, CEO Hakan Samuelsson confirmed plans to increase U.S. production, with the XC60 SUV set to begin manufacturing in late 2026 at the same location. While Volvo has positioned itself as an electric vehicle pioneer, aiming to phase out non-electric models by 2030, it reversed course last year to retain hybrids in its lineup. Currently, Volvo imports all its U.S.-bound vehicles from Europe, except for the electric EX90 SUV, which is assembled in South Carolina. The company previously halted imports from China due to tariffs on Chinese-made vehicles.
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