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US Clears Volvo Sales, Ban Begins 2027 Model Year

5/28/2026

Summary

Volvo Approved

On May 26, the U.S. Commerce Department authorized Volvo Car AB to keep selling passenger vehicles.
Officials said the approval, which followed talks on governance and data-security, is unrelated to President Donald Trump’s Beijing visit.
A ban on Volvo and Zhejiang Geely Holding Group starts with the 2027 model year after a rule finalized in January 2025 took effect in March 2025.

Summary

Volvo Gains Approval

Volvo Cars received authorization from the Commerce Department’s Office of Information and Communications Technology (ICT) and Services to sell connected vehicles using Chinese hardware and software.
The rule, March 17 2025, bans Chinese-Russian software in cars from the 2027 model year and hardware from 2030, exempting driver-assistance features.
Volvo’s China-assembled XC60 and XC40, plus its Shanghai design center, and the EX90 with Google-built-in tech operate under import limits, supporting U.S. growth.

Summary

Volvo Secures Exemption

Volvo CEO Håkan Samuelsson said the company could build Geely-developed electric vehicles at its Charleston, South Carolina plant if regulations allow.
Volvo Car USA, based in New Jersey, runs 281 dealerships, supports about 11,500 U.S. jobs, and its Charleston plant builds the EX90 and Polestar 3.
Officials said the exemption could spur further U.S. investment by Volvo and demonstrates that U.S. policy can accommodate foreign-owned automakers meeting security standards.

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Volvo Approved

On May 26, the U.S. Commerce Department authorized Volvo Car AB to keep selling passenger vehicles.
Officials said the approval, which followed talks on governance and data-security, is unrelated to President Donald Trump’s Beijing visit.
A ban on Volvo and Zhejiang Geely Holding Group starts with the 2027 model year after a rule finalized in January 2025 took effect in March 2025.

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