LOS ANGELES: Polestar Automotive Holding UK Plc has been denied authorisation to sell future models in the United States from next year under connected-vehicle rules aimed at limiting Chinese technology.
Polestar, which is backed by Zhejiang Geely Holding Group, said in a statement it will continue selling existing inventory of its Polestar 3 and Polestar 4 electric vehicles and servicing existing customers.
The United States policy would accelerate its pivot toward Europe while it prepares to manufacture future models in the region, the Swedish company added.
The rules introduced by the Biden administration are designed to block connected vehicles with Chinese software, hardware or ownership ties on national security grounds.
Chinese cars also face punitive tariffs, including a 100% import tax on EVs.
The decision on Polestar comes after Volvo Car AB last month secured US authorization to continue importing and selling connected vehicles despite also being effectively controlled by Geely founder Li Shufu.
Europe accounts for nearly 80% of Polestar's sales, while 94% of first-quarter deliveries came from markets outside the US, the company said.
"We will continue to invest in markets where we have opportunities to grow," said Polestar CEO Michael Lohscheller.
Geely Holding backed Polestar's management, according to an emailed statement.
"While specific market access challenges may arise, ZGH is fully confident in our portfolio companies' board and management as they explore all available avenues to serve their customers around the world," Geely said.
Polestar 3 cars for the United States market are assembled at Volvo's plant in Charleston, South Carolina.
A Volvo spokesperson said it was too early to speculate on any impact, adding that previously announced investments at the Charleston plant remain unchanged.
"Polestar's inability to sell US model-year 2027 vehicles under the connected-vehicle rule may put about US$250 million (RM1.018bil) of 2027 revenue at risk. Yet that equates to only about 5% of group sales. A Europe focus also appears strategically sensible because Polestar could redirect South Korea-built Polestar 4 vehicles from the US to Europe, avoiding EU tariffs on China-made EVs," said Bloomberg Intelligence senior European automotive analyst Michael Dean and senior associate analyst Giacomo Reghelin.
