In January 2025, president Joe Biden’s administration finalised rules effectively barring nearly all Chinese cars and trucks from the US market, as part of a crackdown on vehicle software and hardware from China.
The rules included a ban on most Chinese-developed and maintained software that took effect in March 2026 for the 2027 model year and covered companies with significant Chinese ownership. Lawmakers have proposed making the rules even tougher.
“Given our ownership Volvo Car US was required to follow a process with the US commerce department to obtain a specific authorisation for the continued import and sale of connected cars in the US,” the company said.
“With this specific authorisation, Volvo Cars can continue its growth plans in the US,” it said.
Volvo Cars sold 121,600 vehicles in the US in 2025, down 2.9% from 2024.
The commerce department did not respond to a request for comment.
In September, Volvo Cars said it would begin producing a new hybrid model in the US by the end of the decade.
The new model will be designed for the US market and help Volvo boost capacity utilisation at its South Carolina plant.
In April 2025, Volvo Cars CEO Hakan Samuelsson said the company would produce more vehicles in the US, and the group announced in July that it plans to start producing its popular XC60 mid-size SUV in South Carolina in late 2026.
Volvo, long positioned as an EV trailblazer with the aim of phasing out all non-electric models by 2030, last year reversed course and said hybrids would remain part of its lineup.
Volvo Cars currently imports all of its cars into the US from Europe except its electric SUV EX90, which it assembles in South Carolina.
The Swedish automaker used to also import cars from China but it halted those after tariffs on Chinese-made cars were put into effect.
Volvo said the commerce department gave the company a specific authorisation following constructive discussions with government agencies “regarding Volvo Cars’ governance, technology and data security”.
Sweden’s Polestar, which is also majority-owned by Geely, separately said on Tuesday it continues “to work with US authorities to meet the requirements of the announced regulations”.