Polestar, the electric vehicle brand majority-owned by China's Geely, faces a significant challenge after the US Commerce Department denied an authorization allowing it to sell cars in the United States. This decision, announced in late June, comes as the company prepares to halt sales of Polestar vehicles starting with the 2027 model year.
Impact on Electric Vehicle Dealerships
Matthew Haiken, owner of Polestar Short Hills in northern New Jersey, expressed his frustration regarding the authorization denial. "It’s so unfortunate," he stated, highlighting the difficulties faced by both customers and staff. Haiken, who also operates three other dealerships within the Prestige Collection Auto Group, noted that he and fellow dealers have invested "many millions" in the brand.
The decision is particularly surprising given that Volvo, also owned by Geely, received authorization in March to continue its operations in the US. Volvo cited "constructive discussions" with the Commerce Department regarding governance and data security. In contrast, Polestar's spokesperson refrained from commenting on the differences in treatment.
Reasons Behind the Commerce Department's Decision
The Biden Administration implemented the connected-vehicle rule in January 2025, citing national security concerns over foreign-made automotive technology. Commerce Secretary Gina Raimondo stated, "It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens." This regulation specifically targets Chinese- and Russian-made connected vehicle technology.
