Volvo Cars Wins U.S. Approval to Keep Importing Connected Vehicles

Volvo Cars, which is majority-owned by China’s Geely Holding, said Tuesday it has received U.S. government authorization to keep importing and selling vehicles equipped with connected-car technology in the United States.

The decision follows U.S. rules finalized in January 2025 that restrict Chinese-made vehicle software and hardware on national security grounds.

Those rules began taking effect in March 2026 for the 2027 model year and apply to companies with significant Chinese ownership. Volvo said the authorization clears the way for it to continue its U.S.

growth plans.

The automaker said its ownership structure required it to seek a specific authorization through the U.S. Department of Commerce for the continued import and sale of connected cars. Volvo said the approval followed discussions with U.S. agencies about the company’s governance, technology and data security.

Volvo sold 121,600 vehicles in the United States in 2025, down 2.9% from 2024, according to the company. The Commerce Department did not respond to a request for comment in the source material.

The U.S. restrictions are aimed at limiting Chinese-developed and maintained software, along with other components, from entering the U.S. vehicle fleet. Lawmakers have also proposed tightening the rules further, the source material said.

Production plans in South Carolina

Volvo has been expanding its U.S. manufacturing footprint as tariffs and other trade measures have reshaped supply chains. The company has said it will begin producing a new hybrid model in the United States by the end of the decade to support capacity use at its South Carolina plant.

Volvo also plans to start building its XC60 mid-size SUV in South Carolina in late 2026, the company has said. The automaker currently imports all of its U.S.-sold vehicles from Europe except the electric EX90, which is assembled in South Carolina.

How the rules intersect with Volvo’s lineup

Volvo had previously imported some cars from China but halted those shipments after tariffs on Chinese-made cars took effect, according to the source material. The company has also adjusted its electrification strategy, saying hybrids will remain part of its lineup after earlier aiming to phase out all non-electric models by 2030.

Geely-controlled Polestar said separately Tuesday that it is continuing to work with U.S. authorities to meet the requirements of the regulations, the source material said.

Investors and automakers will be watching for whether U.S. officials tighten the connected-vehicle rules further and how quickly companies shift production and sourcing to keep access to the U.S. market.