Volvo Cars has reached an agreement with the Trump administration, exempting the automaker from restrictions on Chinese communication technologies. The Swedish brand, majority-owned by China's Geely Holding, announced on Tuesday that it received a special permit from the U.S. Department of Commerce to continue importing and selling vehicles equipped with Chinese software. This is reported by Techcrunch.com reports .
These technologies include all software, ranging from smartphone synchronization to autonomous driving functions. In January, the Biden administration approved rules banning vehicles with software and hardware developed and supported by Chinese companies due to national security concerns. Volvo was expected to be affected by these regulations.
According to Volvo representatives, this permit was granted following "constructive negotiations" with the Department of Commerce and other officials regarding the company's management, technologies, and data security. The company can now continue its expansion plans in the U.S. market, including the production of the XC60 and new hybrid models at its South Carolina plant.
Volvo also plans to fully relocate production of the Polestar 3 electric vehicle, from its subsidiary brand Polestar, to the U.S. Currently, this model is also produced in Chengdu, China. The new rules also aim to ban Chinese companies such as Baidu’s Apollo Autonomous Driving, Pony.ai, and WeRide from testing driverless cars in the U.S.
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