Automotive
Polestar questions U.S. sales ban while sister company Volvo is permitted to remain
The Swedish-Chinese automaker told dealers it has received no explanation for the June exclusion, despite sharing vehicle software and production lines with Volvo.
The short version
- Polestar informed its U.S. dealers that it has received no explanation for the U.S. government's decision to ban its vehicle sales while allowing sister brand Volvo to continue operations.
- The automaker pointed out that its vehicles, such as the Polestar 3, share the same software architecture and South Carolina production lines as Volvo's EX90.
- Polestar does not plan to appeal the decision and will instead shift its commercial focus to the European market.
Key facts
- In an August 18 letter to its approximately three dozen U.S. dealerships, Polestar stated it was caught off guard by the Department of Commerce's June 24 decision to ban its sales.[Jalopnik]
- According to Polestar, a Department of Commerce official had previously indicated in April that the company could expect approval if Volvo's application was approved.[Jalopnik]
- Polestar's vehicles share software stacks and assembly lines at a South Carolina factory with Volvo, which received approval to continue U.S. sales in May.[Jalopnik]
- Polestar had offered mitigation proposals to U.S. officials, including data storage restrictions, regular audits, and independent cybersecurity reviews, before its application was denied.[Jalopnik]
- The automaker decided not to appeal the U.S. government's decision and will instead refocus its business on the European market.[Jalopnik]
- A U.S. dealer has filed a lawsuit against Polestar seeking at least $25 million in damages, alleging the automaker planned to exit the market.[Jalopnik]
What remains uncertain
- The U.S. government has not publicly disclosed the specific basis for banning Polestar while permitting Volvo to remain.[Jalopnik]