US approves Volvo to sell connected cars despite China ban

Volvo Cars has received approval from the U.S. government to continue importing and selling vehicles with connected technology in the American market, despite a broader regulatory ban targeting software and hardware with links to China. The Swedish automaker, which is majority-owned by China's Geely Holding, announced the specific authorization from the U.S. Department of Commerce on Tuesday.

The decision allows Volvo to circumvent a rule that prohibits the import of connected vehicles built by companies with ties to China, which takes effect for the 2027 model year. The rule was finalized in January 2025 and implemented in March of that year. Volvo stated that the authorization followed constructive discussions with U.S. officials regarding the company's governance, technology, and data security. With this approval, Volvo said it can continue its growth plans in the United States.

This regulatory backdrop stems from broader U.S. actions focused on national and economic security concerns surrounding connected vehicle technology. Many modern cars contain sensors and systems that can collect and transmit data, raising concerns about potential cybersecurity risks. Alongside the...