It has been two months since the U.S. Commerce Department told Polestar it would be barred from selling its vehicles in the U.S. beyond 2027, with the department allowing parent company Volvo to continue to sell its vehicles. A new report reveals Polestar has been telling dealerships it’s still not sure why it got the boot.

Polestar still looking for answers

Polestar says it still has not gotten an answer from the U.S. on why its waiver from connected-vehicle technology rules was denied while Volvo’s was approved (Photo by Polestar)

In a new letter that was sent out to its dealerships nationwide, Polestar U.S. head of product Peter Wexler says the firm is still seeking a solid answer from the U.S. Commerce Department for why it was blocked from selling in the U.S. For context, the U.S. Government cited the connected-vehicle technology rules that were introduced during the latter half of the Biden administration. These rules ban certain technologies from China due to the possibility of them being threats to U.S. National Security.

Polestar says it was trying to secure a waiver for it to continue sales before it was denied, stating, “In essence, we are currently focusing on getting the attention of (the Commerce Department) to obtain the requested information and to understand the underlying basis for the denial.”

Did Polestar get the Bret Hart treatment?

A twist in Polestar’s letter to dealers revealed the company was reportedly told it would be approved for a waiver alongside Volvo (photo by Polestar)

A twist in this ongoing saga is Polestar’s claim that it was told it would be approved for a waiver alongside Volvo, with both brands needing one because they are owned by the Chinese automaker Geely. Wexler says Polestar answered several rounds of questions last year, with the brand even allegedly being told by the U.S. Commerce Department it would be approved for a waiver.

Polestar was prepared to provide concessions in exchange for an approved waiver, with the firm being open to discussing where its data was stored as well as who would have access to it. It was also willing to discuss auditing, reporting requirements, and independent cybersecurity assessments as part of its efforts to remain in the United States.

But just like how Bret was robbed of the title on that faithful night in Montreal, Polestar’s efforts were ultimately futile when its waiver was denied only a month after Volvo got its own set of papers approved. The move shocked not only those within Polestar, but also the industry at large, with Polestar even claiming “it was contrary to law.” It’s a pity since we did enjoy our time with the Polestar 4 late last year.

Could things shift?

Could things change? Only time will tell (Photo by Polestar)

For now, expect Polestar to remain banned from selling in the U.S., with the Trump administration preferring to keep the ban in place. This might change in a few years when the president leaves office, and a new leader is sworn in.

Depending on elections and how things play out in broader policy, Polestar could use the transition in the White House as an opportunity to bring its case up to the U.S Department of Commerce and perhaps get its waiver application approved to resume local sales here in the U.S.

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