Polestar chief declares end of globalisation after US ban

By the Editorial Team · Friday, July 10, 2026

Sweden’s Polestar will be barred from selling new electric vehicles in the U.S. starting next year due to a government decision targeting companies with Chinese ownership under connected-vehicle regulations. This move accelerates industry regionalization, forcing Polestar to focus on markets outside the U.S. amid increasing geopolitical scrutiny of Chinese-backed automakers.

The chief executive of Sweden’s Polestar has signaled a turning point for the global auto industry following a U.S. government decision that will bar the company from selling new electric vehicles (EVs) in the American market from next year. Michael Lohscheller said the move marks an acceleration of regionalisation trends, effectively ending an era when automotive operations and sales spanned the globe without major restrictions.

Polestar, which is majority owned by Chinese automaker Geely, was denied authorization under U.S. connected-vehicle regulations aimed at limiting the use of Chinese technology. The U.S. Commerce Department’s decision, announced in late June, surprised industry stakeholders, casting uncertainty over other automakers with Chinese investors, including Mercedes-Benz and Lotus.

“This just accelerates the regionalisation everywhere, not only for us but for the entire industry,” Lohscheller said in an interview. He also stated the company would not challenge the decision but rather refocus on expanding its business in Europe and emerging markets such as South Korea and Australia. “The U.S. decision is something we have to accept,” he added.

The ban represents an unprecedented measure against a European car manufacturer and has generated confusion among dealers. Matthew Haiken, president of Prestige Collection Auto Group, which manages Polestar and Volvo dealerships in New Jersey, described the action as puzzling. “There was a road to compliance but... how does this brand get a red light and other brands get green lights?” he said.

The decision came amid heightened U.S. scrutiny of Chinese-owned or backed automakers, aimed at ensuring that vehicle data is not transmitted to China. Volvo Cars, also owned by Geely, was recently granted regulatory approval to continue importing and selling connected vehicles in the U.S. after amending its documentation to clarify data handling practices, according to Volvo CEO Håkan Samuelsson.

Samuelsson indicated confidence in Volvo’s compliance, noting the company’s long history in the U.S. market and its European manufacturing and technology identity despite Chinese ownership. His comments preceded the announcement affecting Polestar.

Polestar operates with approximately 100 employees and maintains around 35 dealerships in the United States. While it will cease selling new vehicles after the ban takes effect, the company will continue to move existing inventory of Polestar 3 and 4 models. The company has been relocating production of the Polestar 3 from China to a facility in South Carolina, while the Polestar 4 is manufactured in South Korea.

The U.S. decision underscores growing geopolitical tensions influencing the automotive sector and highlights challenges faced by multinational companies navigating regulatory landscapes shaped by national security considerations.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.