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The US Connected Vehicle Rule and Volvo's May waiver are corroborated by WardsAuto, Ars Technica, and InsideEVs; Polestar's specific denial aligns with reports that other Geely brands face exclusion.

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Home/Tech/US Bans Polestar From Selling New Cars After 2027
VERIFIEDBy Xavier Rivera· ·2 min read

US Bans Polestar From Selling New Cars After 2027

The US Department of Commerce has refused Polestar the authorization required to sell new cars past the 2027 model year under the Connected Vehicle Rule. The move effectively ends the Geely-owned brand's presence in the American market while its European growth strategy continues.

Source:Carscoops
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US Bans Polestar From Selling New Cars After 2027
TL;DRAI · 60 sec read

The US blocks Polestar from selling new cars after the 2027 model year. The Connected Vehicle Rule bars the Geely-owned EV maker over Chinese software and hardware. This ends US sales and South Carolina Polestar 3 output, pushing the brand to focus on Europe instead.

The US has blocked Polestar from selling new cars past the 2027 model year, shutting the Geely-owned EV brand out of the American market.

The Connected Vehicle Rule bars Polestar's future sales. The US Department of Commerce’s Bureau of Industry and Security refused the authorization Polestar needs to continue operating in the country. The decision stems from the Connected Vehicle Rule, finalized under the Biden administration, which bars cars with Chinese or Russian software and hardware in their connectivity systems on national-security grounds.
Geely owns a majority stake in Polestar, and that Chinese ownership is the reason the rule applies.
Geely owns a majority stake in Polestar, and that Chinese ownership is the reason the rule applies. Washington has spent months working to block cars built and exported from China. The Trump administration has cast the effort as protection for domestic manufacturing.

Polestar 3 production in South Carolina is affected. The ruling hits the Polestar 3, the only model the automaker builds in the United States at its South Carolina factory since 2024. Those American-made examples are shipped to Europe as well.
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Existing 3 and 4 inventory in the US remains available for sale until stock runs out. Polestar has promised to continue servicing cars already sold and supporting their owners.
Sister brand Volvo, also owned by Geely, secured a waiver in May.
Volvo received a waiver while Polestar did not. Sister brand Volvo, also owned by Geely, secured a waiver in May. Software restrictions under the rule take effect for the 2027 model year, with hardware restrictions following in 2030.

Polestar shifts focus to Europe and other markets. The US accounted for just 6 percent of Polestar’s retail sales in the first quarter of 2026. CEO Michael Lohscheller said in a statement that the automotive industry is entering a new phase based on regional dynamics.
“Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe,” Lohscheller continued. He pointed to record sales in 2025 and the first quarter of 2026, several new market launches in Europe this year, and continued investment in Southeast Asia, Eastern Europe, Latin America and Canada.
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