The rule exempts vehicles over 10,000 pounds, allowing companies like BYD to continue assembling electric buses in California. The auto industry, represented by the Alliance for Automotive Innovation, expressed concerns over the complexity of the global supply chain and potential disruptions. Polestar criticized the rule for potentially prohibiting its sales in the U.S., while Waymo, planning to use vehicles from Geely’s Zeekr, supported the rule but acknowledged possible impacts on its expansion plans. The rule is part of ongoing trade restrictions on Chinese-made vehicles and components, as the U.S. seeks to secure critical supply chains and protect national security.
Key takeaways:
- The Biden administration has finalized a rule banning Chinese vehicles and connected vehicle software from "countries of concern," impacting automakers like Ford, GM, and Polestar, as well as companies like Waymo.
- The rule targets technologies that connect vehicles to the outside world, such as Bluetooth, Wi-Fi, and cellular components, due to national security concerns over data collection by foreign adversaries.
- The prohibition on software goes into effect for model year 2027 vehicles, while the hardware ban starts with model year 2030 vehicles, with exemptions for vehicles over 10,000 pounds.
- The rule could disrupt the plans of companies like Polestar and Waymo, with the latter supporting the rule but reviewing its final version for potential impacts on its operations.