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Volvo Cars Gets U.S. Authorization to Continue Selling Connected Vehicles

A Commerce Department case-by-case exemption preserves Volvo’s U.S. production and sales after a government review found its governance, technology, data security measures acceptable.

Overview

  • Volvo Cars, which received the specific authorization on Tuesday, May 26, can continue importing and selling connected vehicles in the United States under a case-by-case approval from the Office of Information and Communications Technology and Services.
  • The authorization followed what Volvo described as constructive discussions with Commerce officials and other U.S. agencies that reviewed the company’s governance, software and network security controls.
  • The decision protects Volvo’s sizable U.S. footprint, including its Charleston, South Carolina factory where the company has invested more than $1.3 billion and created about 2,000 jobs, and allows planned production and model launches to move forward.
  • The approval is an exemption for Volvo and does not change the broader Connected Vehicles rule, which still bars covered Chinese- and Russian-linked connected vehicle software for 2027 model-year cars and hardware for 2030 model-year cars.
  • The rule targets vehicle connectivity and automated-driving systems on national-security grounds, and the Volvo case shows manufacturers can seek narrow, fact-specific clearances that do not guarantee similar results for other companies with Chinese ties.