One of the world's leading premium electric vehicle manufacturers could "effectively" be banned from selling its cars in the United States following a proposed rule from the Biden Administration.
Swedish brand Polestar announced that a proposal set out by the United States Government would "effectively prohibit" the manufacturer from selling vehicles in the United States.
The automaker, which is majority-owned by China's Geely, could potentially fall foul of new rules cracking down on the use of Chinese vehicle hardware and software.
In comments filed with the Commerce Department, Polestar said proposed rules would bar the sale of vehicles that it builds in South Carolina, as well as those produced in China.
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The Polestar 4 is the latest offering from the Swedish manufacturer
POLESTAR
The Commerce Department has put forward rules that could prohibit connected vehicles from China on American roads, citing national security concerns.
Polestar said 10 per cent of its workforce was in China, while a "substantial portion of its operations" are situated in China, Reuters reported.
Polestar said: "[Commerce] should consider whether a rule that effectively shuts down the operations of a lawfully organized US company with substantial US investments and so many personnel and key decision-making units in friendly nations and the United States is appropriately tailored to address the stated national security concerns."
In February, Geely confirmed that it would be providing full operational and financial support to Polestar after Volvo Cars said it would stop funding the brand.
Volvo Cars confirmed it would no longer provide further funding to Polestar and would extend the repayment period for the existing convertible loan by 18 months to the end of 2028.
Despite the split, it acknowledged that the partnership between Volvo and Polestar had provided benefits for both companies across research and development, manufacturing and sales.
Speaking at the time, a spokesperson for Geely said: "Geely Holding will continue to provide full operational and financial support to the independent exclusive (Polestar) brand going forward.
"This support will not require a reduction of Geely Holding shareholding in Volvo Cars."
The Polestar 4 has a maximum range of 385 miles and a price point of just under £60,000
POLESTAR
The briefing stated: "A 100 per cent tariff rate on EVs will protect American manufacturers from China’s unfair trade practices.
"This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers."