Polestar says Biden proposal would ‘effectively prohibit’ sale of its cars in US By Reuters

By David Shepardson

WASHINGTON (Reuters) -Polestar mentioned on Monday {that a} proposed Biden administration rule to bar using Chinese language car {hardware} and software program would “successfully prohibit” the automaker from promoting automobiles in the US, together with automobiles made within the U.S.

The Swedish automaker, a model of Volvo (OTC:) Automobiles that’s majority-owned by China’s Geely, mentioned in feedback filed with the Commerce Division {that a} proposed rule prohibiting Chinese language related automobiles on American roads on account of nationwide safety issues would bar the sale of automobiles that Polestar (NASDAQ:) is constructing in South Carolina in addition to these produced in China.

Polestar mentioned a considerable portion of its operations are outdoors China, whereas seven of its 10 administrators are from Europe or the US and its CEO is German. Polestar mentioned it has round 2,800 workers globally, with 280 in China.

Commerce “ought to take into account whether or not a rule that successfully shuts down the operations of a lawfully organized U.S. firm with substantial U.S. investments and so many personnel and key decision-making items in pleasant nations and the US is appropriately tailor-made to deal with the acknowledged nationwide safety issues,” Polestar mentioned.

The Commerce Division declined to remark.

Reuters reported in Might that 4 Chinese language car fashions are bought within the U.S., together with the Polestar 2 and Volvo’s S90 sedans.

Final month, Commerce instructed Reuters that Common Motors (NYSE:) and Ford Motor (NYSE:) would want to cease importing automobiles to the U.S. from China beneath the proposed rule.

Ford instructed Commerce on Monday in feedback that the rule might be interpreted “to ban the sale of accomplished related automobiles by U.S. automakers if these automobiles have been assembled throughout the jurisdiction of a overseas adversary akin to by a overseas affiliate of a home U.S. automaker.”

Ford mentioned Commerce ought to make clear that the car import prohibition “doesn’t activate the place the place a related car’s closing meeting occurs to happen,” but when it meets software program and {hardware} necessities.