US Automakers Urge Congress to Pass Chinese Vehicle Ban Before Year-End

A major US automotive industry group has called on Congress to pass legislation banning Chinese vehicles from the American market before the end of the year. The Alliance for Automotive Innovation, which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis and others, warned that Chinese automakers are currently exporting subsidised vehicles equipped with connected software and hardware globally.

John Bozzella, the group's CEO, wrote to lawmakers that while this has not yet occurred inside the US, the scale and urgency of the threat demands action. He urged Congress to enact a ban on Chinese vehicles, software and hardware before adjourning, describing it as a matter of national security.

The push comes as the Senate Commerce Committee approved legislation in July to toughen an existing government ban on Chinese automakers entering the US market. However, the bill still faces hurdles before final passage. Bozzella argued that passing the measure would send a clear, bipartisan message that China's strategy to dominate global automotive manufacturing will be met with a national security response.

In a previously unreported letter, the Alliance also urged the committee to explicitly prohibit the Commerce Department from granting authorisations to Chinese automakers such as BYD, Chery, SAIC Motor and others subsidised by the Chinese Communist Party to manufacture, sell or import connected vehicles to the US.

Republican Senator Bernie Moreno of Ohio and Democratic Senator Elissa Slotkin of Michigan have proposed legislation to codify a regulation imposed by the Biden administration that effectively bans all Chinese automakers from selling or building passenger vehicles in the US. The rules cover Bluetooth, Wi-Fi, cellular connectivity and some satellite communications technologies, citing national security concerns over vehicles' ability to collect sensitive data on American owners.

Senate Commerce Committee Chair Ted Cruz noted that a provision banning companies with more than 15% ownership by Chinese entities would bar Mercedes-Benz from selling vehicles in the US due to its nearly 20% passive Chinese investment. Cruz said the bill requires changes before it can become law.

In June, Polestar said the Trump administration was forcing the electric-vehicle maker to stop selling vehicles in the US beginning in the 2027 model year. The Sweden-based company is majority-owned by China's Geely Holding. The Chinese embassy has not commented but opposes US efforts to restrict its vehicle exports.