• by Tanya Gazdik , 4 hours ago

Premium electric vehicle maker Polestar will leave the U.S. auto market after this model year. 

U.S. authorities have decided not to grant Polestar authorization under current U.S. Connected Vehicle Rule. As a result, Polestar will not be able to market and sell new model year 2027 vehicles in the U.S. under the current regulatory framework. 

“We will sell existing stock, but from model year 2027 onwards, we will stop marketing and sales of our cars in the U.S.,” according to a Polestar spokesperson. “Supporting our customers remains our highest priority. Existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today. All existing warranties remain in effect and will continue to be honored in accordance with their terms and conditions.”

The Swedish manufacturer of electric vehicles, which became a distinct brand in 2017, revealed the ban in an SEC filing, which it paired with a press release this week announcing that it's shifting manufacturing to Europe, according to CNET.

The decision follows a restriction set forward by the Department of Commerce’s Bureau of Industry and Security that will not grant authorization because of connected vehicle technology linked to China. The move comes just less than a month after its sister brand Volvo Cars, also owned by China-based automaker Zhejiang Geely Holding Group, was granted permission to continue trading in the U.S.

“The Bureau withdrew authorization under its Connected Vehicle Rule, which restricts the import and sale of cars equipped with connected-vehicle technology linked to China or Russia,” according to WardsAuto.

This is being framed as a national security issue, but it could secretly be a relief to the automaker, which has been struggling. 

“Polestar sold an estimated 5,400 vehicles in the U.S. last year,” according to The Truth About Cars. “While that’s still better than what we’ve seen from some other brands that have miraculously managed to stick around in this country (e.g. Alfa Romeo), it still represented a 58% decline in volume from the previous year.”

It is unclear what will happen to the company’s marketing team.

“We are currently working through the details of our future organizational needs in the U.S. but it goes without saying that the number will be significantly lower,” a Polestar spokesperson tells Marketing Daily. “It’s important to clarify that the changes we’re making are based on business needs going forward, not individuals. The decisions are driven by structural and strategic needs, and certain roles may unfortunately no longer be required in the future setup.”

Whether the ruling could be reversed is unknown.

“The U.S. remains an important automotive market,” according to the spokesperson. “While our current focus is on supporting customers and partners and assessing the implications of this decision, we will continue to monitor regulatory developments and future opportunities."