New US rule might power GM and Ford to halt imports of automobiles made in China, official says

The rule would additionally have an effect on different automakers that promote or construct autos in the US, akin to Volvo Vehicles and BYD. [File]
| Picture credit score: REUTERS

Basic Motors and Ford Motor must cease importing autos into the US from China underneath a proposed rule proscribing Chinese language software program and {hardware}, a U.S. Commerce Division official informed Reuters on Monday.

The rule would additionally have an effect on different automakers that promote or construct autos in the US, akin to Volvo Vehicles and BYD.

GM sells the Buick Envision and Ford sells the Lincoln Nautilus, each assembled in China, within the U.S. market. Ford declined to remark. Within the first six months of 2024, GM bought about 22,000 Envisions and Ford bought 17,500 Nautilus SUVs within the U.S.

“We anticipate at this level that any automobile manufactured in China and bought in the US would fall underneath the bans,” mentioned Liz Cannon, who heads the Commerce Division’s workplace of data and communications expertise.

GM and Ford are conscious, he added, that “sooner or later” manufacturing in China for the US market “must be closed in China and moved elsewhere.”

GM didn’t say whether or not it believes it should cease gross sales of the Envision, however added that “the federal government has an necessary function in establishing clear insurance policies” on issues of safety.

Commerce mentioned it could enable firms to hunt “particular authorization” to proceed promoting autos or elements.

China’s BYD North America, a unit of BYD that makes electrical buses in Lancaster, California, might be affected. The corporate didn’t instantly remark.

“We’ll must work with them to raised perceive their provide chain,” Cannon mentioned. “They’re going to have to return in and apply for particular authorization.”

For instance, software program is more likely to be prohibited whether it is developed by a group of Chinese language workers in that nation for a Chinese language automotive producer, however is more likely to be permitted whether it is developed by Chinese language workers working overseas for a non-Chinese language firm.

Reuters reported in Might that 4 Chinese language automobile fashions are bought in the US, together with the Polestar 2 and Volvo’s S90 sedan. Polestar and Volvo are subsidiaries of Chinese language automaker Geely.

Cannon mentioned he hopes firms like Volvo will meet with Commerce “to work with us to speak about methods they might mitigate the danger and we’re open to that” and the company might grant them an authorization.

Volvo Vehicles mentioned: “We’re reviewing the US Division of Commerce’s proposal and are assessing any potential affect it could have on us and the US automotive business.”