Carmakers urge US Congress to quickly pass law banning Chinese cars, given “scale and urgency”

The Alliance for Automotive Innovation (AAI), which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis and other major carmakers, yesterday urged the US Congress to pass legislation barring Chinese vehicles before year-end, Reuters reports.

“Right now, Chinese automakers are dumping subsidised vehicles ​with connected software and hardware around the world.

“This hasn’t happened inside the US yet, but given the scale ⁠and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning ​this year and make this policy the law of the land,” AAI president and CEO John Bozzella wrote Congress in a letter seen by Reuters.

On July 22, the Senate commerce committee passed a bill – the Connected Vehicle Security Act – that proposes a ban on the import, production, sale and resale of vehicles from manufacturers in which Chinese shareholders hold more than 15% (funnily enough, this includes Mercedes-Benz). The bill is pending full Senate approval.

Carmakers urge US Congress to quickly pass law banning Chinese cars, given “scale and urgency”

Bozzella said passing the bill “will send a clear and bipartisan message that China’s strategy to dominate global automotive manufacturing will be met with a national security ​response from the American government.”

In July, the AAI urged the committee to consider as part of the legislation explicitly prohibiting the commerce department from granting ‌specific ⁠authorisations to Chinese carmakers such as “BYD, Chery, SAIC Motor and others subsidised by the Chinese Communist Party to manufacture, sell or import connected vehicles to the US”, according to a previously unreported letter.

Ohio Republican Bernie Moreno and Michigan Democrat Elissa Slotkin proposed legislation to codify a regulation imposed by the Biden administration that effectively ​bans all Chinese carmakers from ​selling or building passenger ⁠vehicles in the US and takes other steps to prevent China from entering the US light-duty market.

In June, Polestar, which is majority-owned by Geely, announced that it would stop selling cars in the US from the 2027 model year. The Bureau of Industry and Security – an agency of the US commerce department – decided not to grant the Sweden-based carmaker an authorisation under the Connected Vehicle Rule. However, sister brand Volvo got an exemption in May, although it said it must still meet the rule’s requirements.