New US Rule Would Require GM and Ford to Halt Imports of Cars Built in China, Official States

By David Shepardson

WASHINGTON – General Motors and Ford Motor may have to halt the import of vehicles from China under a proposed regulation aimed at addressing concerns related to Chinese software and hardware, a U.S. Commerce Department official stated.

This regulation would also impact other automakers operating in the U.S., including Volvo Cars and BYD. GM sells the Buick Envision and Ford markets the Lincoln Nautilus, both of which are assembled in China and available in the U.S. In the first half of 2024, GM reported sales of approximately 22,000 Envisions, while Ford sold about 17,500 Nautilus SUVs.

"We expect that any vehicle manufactured in China and sold in the U.S. would be subject to these prohibitions," stated Liz Cannon, who leads the Commerce Department’s information and communications technology office. She noted that both GM and Ford acknowledge that their production for the U.S. market would need to be relocated from China.

While GM did not specifically address whether it would need to stop sales of the Envision, the company emphasized the importance of the government establishing clear policies regarding security matters. The Commerce Department indicated it would permit companies to apply for "specific authorization" to continue selling affected vehicles or components.

BYD North America, a subsidiary of BYD that produces electric buses in California, may also be impacted, although the company has not yet commented. Cannon mentioned that the agency would need to assess the company’s supply chain, requiring them to seek specific authorization.

The regulation outlines that software developed by Chinese teams in China for a Chinese automaker would likely be restricted. Conversely, software developed by Chinese employees working in another country for a non-Chinese company may be permitted.

Reports indicate that several Chinese vehicle models are available in the U.S., including the Polestar 2 and Volvo S90 sedans, both of which are linked to the Chinese automaker Geely.

Cannon expressed that companies like Volvo would be encouraged to meet with the Commerce Department to discuss potential strategies for reducing risk, and the agency is open to granting authorizations. Volvo Cars announced that it is currently reviewing the proposed regulation and assessing its potential impacts on the company and the broader U.S. auto industry.