Volvo Cars, majority owned by China's Geely Holding, received specific authorization from the US Department of Commerce to continue importing and selling vehicles with connected car technology in the United States as of May 26-27, 2026 [1, 2, 3, 4, 5, 6, 7, 8, 9]. The approval follows a process required due to Volvo’s ownership structure and came after constructive discussions with US officials on governance, technology, and data security [1, 2].

The US finalized rules under the Biden administration in January 2025 that bar nearly all Chinese cars and trucks from the US market starting with 2027 model-year vehicles equipped with software developed and maintained by Chinese companies [1, 2, 3, 4, 5, 6, 7, 9]. In March 2026, the ban on Chinese-developed connected vehicle software took effect for 2027 model-year vehicles [1, 4, 5, 6, 7, 9]. The rules additionally expand bans to hardware from 2030 model-year vehicles [2, 3].

Volvo Cars’ US subsidiary was required to follow a formal process with the Department of Commerce to gain this special authorization allowing continued imports and sales of connected vehicles in the US [1, 4, 5, 6, 7, 8, 9]. A Volvo Cars spokesperson said, "Given our ownership Volvo Car USA was required to follow a process with the US Department of Commerce to obtain a specific authorisation for the continued import and sale of connected cars in the US." The company added that "with this specific authorisation, Volvo Cars can continue its growth plans in the United States." [1]

Volvo sold 121,600 vehicles in the US in 2025, a 2.9% decrease from the previous year [1, 4, 5, 6, 7, 9]. Currently, the company imports nearly all cars for the US market from Europe except for the electric SUV EX90, assembled in South Carolina. Imports from China were halted after US tariffs took effect [1, 4, 5, 6, 7, 9].

Volvo plans to expand US production, including starting to build the popular XC60 midsize SUV in South Carolina in late 2026 and launching a new hybrid model designed for the US market before 2030 [1, 2, 3, 4, 5, 6, 7, 9]. CEO Hakan Samuelsson said in April 2025, "We will produce more vehicles in the United States." [1]

Volvo had originally planned to phase out non-electric vehicles by 2030 but reversed course and will retain hybrid models alongside electric vehicles [1, 4, 5, 6, 7, 9]. Swedish electric vehicle brand Polestar, also majority owned by Geely, said it continues to work with US authorities to comply with regulations [1, 4, 5, 6, 7, 9].

The US Department of Commerce and the White House declined to comment on Volvo’s authorization request [1, 4, 5, 6, 8, 9].