Polestar to cease United States vehicle sales by 2027
- tech360.tv
- 2 hours ago
- 2 min read
The United States administration is forcing Polestar to stop selling vehicles in the country beginning with the 2027 model year. This action follows a decision by the Commerce Department to deny the electric-vehicle manufacturer authorization under the Connected Vehicles Rule.
The rule restricts the import and sale of vehicles equipped with connected technology linked to China. This policy covers Bluetooth, Wi-Fi, cellular connectivity, and satellite communications, citing national security concerns regarding the collection of sensitive data.
The regulation was adopted in Jan. 2025 and remains in place under the current administration. Polestar confirmed it would not appeal the denial of its authorization request.
The company will continue to sell existing Polestar 3 and Polestar 4 vehicles in the United States and will maintain access to its service network. Shares of the manufacturer were down 6.3% following the announcement.
Polestar, which is majority-owned by China-based Geely Holding, is shifting its focus toward Europe. Chief Executive Officer Michael Lohscheller stated that the company views Europe as its largest growth engine.
Lohscheller noted that the strategy includes manufacturing the Polestar 7 in Europe. Currently, only 6% of the company's first-quarter sales originated in the United States, compared to 78% from Europe.
The company previously warned that these regulations would effectively prohibit it from selling vehicles in the United States. This includes cars that were previously manufactured domestically.
Questions remain regarding the future of the Polestar 3, which is the only model currently produced in the United States. Volvo Cars, a sister brand that manufactures some Polestar vehicles, stated that production in China has not yet been halted.
Polestar must stop selling vehicles in the United States from the 2027 model year.
The United States Commerce Department denied authorization under rules restricting Chinese connected-vehicle technology.
The manufacturer is pivoting its business strategy to prioritize growth in the European market.
Source: Reuters
