Volvo Cars Wins US Approval for Connected Vehicle Sales Volvo Cars has received authorization from the US government to continue importing and selling connected vehicles despite its majority ownership by China's Geely Holding, clearing a key regulatory hurdle as the automaker expands its North American manufacturing footprint and broadens its product strategy to include both electric and hybrid vehicles. The approval follows regulations finalized by the Biden administration in January 2025 that effectively restrict most Chinese vehicles and vehicle technologies from entering the US market. The rules prohibit most software developed and maintained in China for connected vehicles beginning with the 2027 model year and apply to companies with significant Chinese ownership. “Because of our ownership structure, Volvo Car USA had to undergo a process with the US Department of Commerce to obtain a specific authorization allowing the continued import and sale of connected vehicles in the country,” Volvo said in a statement. “With this specific authorization, Volvo Cars can continue its growth plans in the United States.” The automaker said the authorization was granted following what it described as “constructive discussions” with US government agencies regarding the company’s governance framework, technology architecture, and data security practices. The decision provides greater certainty for Volvo’s US operations as the company increases local manufacturing capacity. In September, Volvo announced plans to begin production of a new hybrid vehicle in the United States before the end of the decade. The model is being developed specifically for the US market and is expected to increase utilization at the company’s manufacturing facility in South Carolina. The company has also confirmed that production of the Volvo XC60 midsize SUV will begin in South Carolina in late 2026. Volvo CEO Håkan Samuelsson previously stated that the automaker intends to manufacture more vehicles in the United States as