Key facts
- Ford is seeking U.S. government authorization to continue importing its China-built Lincoln Nautilus SUV.
- New U.S. rules ban most Chinese-developed and -maintained software and companies with significant Chinese ownership in connected vehicles.
- The restrictions are based on national security concerns related to sensitive data collection from American vehicle owners.
- Software prohibitions take effect for model year 2027, with hardware restrictions following for model year 2030.
- General Motors has mandated suppliers to remove Chinese parts from their supply chains by 2027.
- Volvo Cars, majority-owned by Geely, has received an authorization.
Ford Motor and other automakers are seeking U.S. government authorization to continue selling certain China-built vehicle models that have come under scrutiny due to new restrictions on Chinese software and hardware in connected cars. The rules, implemented under President Joe Biden and continued by the Trump administration, aim to address national security concerns related to the collection of sensitive data from American vehicle owners.
Ford has specifically requested authorization from the U.S. Commerce Department to import its China-built Lincoln Nautilus SUV, a model that has been sold in U.S. showrooms prior to the recent government restrictions. While the software for the Nautilus is developed in the U.S., it is installed in China, necessitating government approval for continued sales in the United States.
Automakers are navigating a complex licensing process that highlights the deep integration of the U.S. auto industry's supply chains with China. The regulations include a ban on most Chinese-developed and -maintained software and target companies with significant Chinese ownership. The software prohibitions are set to take effect for the 2027 model year, with separate restrictions on hardware commencing for the 2030 model year. Ford anticipates importing 2027 model year Nautilus vehicles in January, providing a window to secure the necessary authorization.
The hardware restrictions are anticipated to pose a more cumbersome challenge for automakers than the software bans, requiring more time to adapt.