Polestar forced to stop selling cars in the USA due to its links with China
Polestar will be focusing more of its efforts on Europe after being denied the right to sell in the USA
Polestar is being forced to stop selling cars in the United States due to new rules targeting Chinese manufacturers, and as a result the brand will now have to pin its hopes on Europe.
Polestar is the spin-off brand of the quintessentially Swedish firm Volvo, but both are owned by the Chinese conglomerate Geely, which owns Lotus and Smart, too.
The Polestar 2, Polestar 4 and new flagship Polestar 5 are built in China, although the Polestar 3 SUV is made in the US at the Ridgeville plant in South Carolina that also produces the Volvo EX90.
The US Department of Commerce’s Bureau of Industry and Security denied the brand approval to sell new cars from model year 2027 onwards in the country under its ‘Connected Vehicle Rule’. This currently restricts the sale of “connected vehicles by connected vehicle manufacturers owned by, controlled by, or subject to the jurisdiction or direction of China or Russia, and vehicles using their covered software”.
The justification for these rules is the protection of national security, as Washington believes companies from these countries may be compelled to share data or allow remote access to connected vehicles in the US.
Curiously, Volvo was granted authorisation from the same government department to continue importing and selling its cars in the US, avoiding the same fate as its sibling. Meanwhile, Ford is in the process of getting a similar exception to the rule in order to continue selling the China-built Lincoln Nautilus.
Lotus is in the crosshairs of the US’s anti-China rules, as part of the Geely family, with its Eletre SUV and Emeya GT being made in China. However, at the time of writing, there’s been no word on whether it will be forced to stop sales, too.
Polestar launched in the US in late 2020, and had built up a network of 30 dealers across the country. While America made up a small percentage of the brand’s global sales, Polestar had still managed to shift several thousands of cars there.
Thankfully for customers who bought them, the company promised to continue to support customers, including providing access to its service network. It’s also going to sell existing stock of the Polestar 3 and Polestar 4 in the US for the time being.
The only possible silver lining from this news is that Polestar will now be focusing more of its efforts on Europe, which is by far the biggest market for the brand, accounting for roughly 80 per cent of its retail sales.
In announcing the company’s exit from the US, Polestar CEO Michael Lohscheller said: “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.
“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year. In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada.”
The next model set to arrive is an estate version of the Polestar 4 coupé. But if you prefer the more rakish original, right now you can save £5,000 on one thanks to the Auto Express Buy A Car service.
Did you know you can sell your car through Auto Express? We’ll help you get a great price and find a great deal on a new car, too.
