Polestar blocked from selling cars in U.S. over national security concerns
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Polestar will focus on the European market after being banned in the U.S. Photo courtesy of Polestar
Polestar, the Chinese-owned electric vehicle company, is withdrawing from the U.S. market after the U.S. Commerce department banned its high-tech cars, citing national security concerns.
The big picture: It's the latest sign of a new, fractured era in the auto industry. After decades of globalization, the industry is splintering into regional markets and supply chains, driven by geopolitics and the rise of low-cost, high-tech competition from China.
Driving the news: Polestar, majority-owned by China's Geely Holding, is the first casualty of a Biden-era rule that restricts the import and sale of cars with connected-vehicle technology linked to China beginning with the 2027 model year.
- Polestar had applied for a waiver — similar to one recently granted to its sister company, Volvo Cars, also a Geely-controlled company — but the Commerce Department denied its request, the company said.
- Polestar CEO Michael Lohscheller said the carmaker would increase its strategic focus on Europe, where it sells nearly 80 percent of its vehicles.
Between the lines: Only about 6 percent of Polestar's sales volume were in the U.S. during the first quarter, so the pullout won't likely cripple the brand.
- But for Polestar customers, dealers and employees in the U.S., the decision is a huge blow.
- Matthew Haiken, owner of Polestar Short Hills in New Jersey, told Automotive News that he was "absolutely devastated" by the turn of events.
- "I'm really, really, really upset," Haiken said. "I made money with Polestar. I made investments with the brand. I was looking forward to all the new product. I'm just heartbroken."
What's next: Polestar dealers will sell down Polestar 3 and Polestar 4 vehicles in stock, and the carmaker said it will continue to support customers, including providing access to Polestar's service network.
The intrigue: Waymo, which is rolling out another Geely-built vehicle in its robotaxi fleets, says it doesn't expect the same scrutiny for its AVs.
- Waymo imports stripped-down, disconnected base vehicles from Geely's Zeekr brand, and then installs its own U.S.-developed autonomous driving software at a factory in Arizona.
- Carmakers have no access to Waymo software, a spokesman says.
