close
close

Ford and GM import to China under threat – report

Posted on by darion

Volvo produces S90 for US in China

General Motors and Ford will be required to stop importing vehicles from China to the United States under proposed rules aimed at restricting Chinese software and hardware, a U.S. Commerce Department official told Reuters.

The rule would also impact other automakers that sell or produce vehicles in the U.S., such as Volvo Cars and BYD, the report said.

GM sells the Buick Envision in the U.S. and the Ford Lincoln Nautilus, both assembled in China.

Ford did not respond to Reuters’ request for comment, but GM sold about 22,000 Envision SUVs in the U.S. in the first half of 2024, while Ford sold 17,500 Nautilus SUVs.

“At this point, we anticipate that any vehicle manufactured in China and sold in the U.S. will be subject to bans,” Liz Cannon, head of the Commerce Department’s office of information and communications technology, told the news agency. She added that GM and Ford knew that “in the future” production in China for the U.S. market “would have to be shut down in China and moved elsewhere.”

Reuters reported that GM did not comment on whether it would be necessary to halt sales of the Envision, but added that “government plays an important role in setting clear policy” on safety issues.

Get access to the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – Free Sample

Your download email will arrive shortly

We are confident in the exceptional quality of our company profiles. However, we want you to make the best decision for your business, which is why we offer a free sample that you can download by submitting the form below

By GlobalData







Please visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can opt out of future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address provided is your corporate email address.

The Commerce Department told news agencies it would allow companies to apply for a “specific authorization” to continue selling vehicles or parts.

China’s BYD North America, which builds electric buses in Lancaster, California, could be affected. The company did not immediately comment to Reuters.

“We’ll have to work with them to better understand their supply chain,” Cannon said. “They’ll have to come in for specific authorization.”

For example, the software would likely be banned if it was developed by a team of Chinese workers in that country for a Chinese car manufacturer. But the software would likely be allowed if it was developed by Chinese workers working in another country for a non-Chinese company.

Reuters reported in May that four Chinese car models were being sold in the U.S., including the Polestar 2 and Volvo S90 sedans – Polestar and Volvo are subsidiaries of Chinese carmaker Geely.

Cannon told Reuters she expects companies like Volvo to meet with the Commerce Department “to discuss with us ways to mitigate the risk, and we are open to that,” and the agency could grant them authorization.

Volvo Cars told the news agency: “We are reviewing the U.S. Department of Commerce’s proposal and analyzing any potential impact it may have on us and the U.S. auto industry.”