Trump Admin permits Volvo to keep selling connected cars in the U.S.

Volvo Cars has successfully negotiated an agreement with the Trump administration, allowing the company to continue selling vehicles equipped with Chinese-connected technology in the United States. This exemption comes as a relief to the Swedish automaker, which is primarily owned by China's Geely Holding, following a crackdown on connected vehicle technology linked to Chinese firms. On Tuesday, Volvo announced that it received specific authorization from the U.S. Department of Commerce, enabling it to import and sell cars that utilize Chinese software and hardware designed for connectivity features, ranging from phone synchronization to certain automated driving capabilities. This development follows earlier restrictions imposed by the Biden administration in January 2025, which aimed to prevent the entry of vehicles using technology developed by Chinese companies due to national security concerns. The new regulations were set to take effect with the 2027 model-year vehicles, while a further ban on the import of connected hardware is slated for the 2030 model-year vehicles. Despite the majority of Volvo's production taking place in Sweden, the company’s affiliations with Geely and its manufacturing base in China placed it under scrutiny from these regulations. Volvo stated that the recent approval was the result of "constructive discussions" with U.S. officials regarding its governance and data security measures. With this green light, Volvo is poised to advance its growth strategies within the U.S. market, having previously announced intentions to produce two additional models—the XC60 mid-size SUV and a new hybrid vehicle—at its South Carolina factory. Additionally, the automaker revealed plans to shift all production of the Polestar 3, an electric vehicle from its sister brand Polestar, to the U.S. facility, which was previously also manufactured in Chengdu, China. The regulatory framework, titled "Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles," emphasizes the risks posed by automated driving systems linked to Chinese companies. Current regulations prevent these firms from testing autonomous vehicles in the U.S., though several, including Baidu’s Apollo and Pony.ai, have been granted permits to operate their technology in California with human safety operators. As this situation develops, TechCrunch has reached out to the California Department of Motor Vehicles to determine if existing permits for these companies will be affected under the new guidelines.