The United States plans to ban key software and hardware from China, and General Motors and Ford may stop importing some models
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Interface News Reporter | Liu Zeran
On Monday local time, the US Department of Commerce proposed a new regulation that plans to ban the use of critical Chinese software and hardware in connected vehicles on US highways.
According to relevant reports, this regulation will first affect domestic brands in the United States, including General Motors and Ford. The new regulations will force major car companies such as General Motors, Ford, and Toyota to remove critical Chinese software and hardware produced in the United States in the coming years. On a specific timetable, this regulation will take effect on vehicle models in 2027 (software field) and 2030 (hardware field).
It is understood that this proposal was put forward after the White House ordered an investigation in February this year. After the information was released on Monday, the US Department of Commerce will provide the public with 30 days of discussion time and hopes to make a final decision before January 20, 2025. This rule applies to all vehicles driving on highways, but does not include agricultural, mining vehicles, drones, and trains.
Gina Raymond, Secretary of Commerce of the United States, pointed out in the statement that "when foreign competitors develop software to enable vehicles to be used for monitoring and remote control, this threatens the privacy and security of the American people." According to the data of the United States Department of Commerce, at present, there are few Chinese made cars or light trucks imported into the United States, and most of the newer models are "connected", with on-board network hardware to achieve Internet access.
Under this new regulation, models such as General Motors' Buick Enclave and Ford's Lincoln Navigator are at risk of being discontinued. Both of these cars are assembled in China, with General Motors selling approximately 22000 Buick Enclaves in the first half of 2024, while Ford's high terminal brand Lincoln Navigator sold 17500 units.
According to relevant reports, in the US market, the two domestic luxury brands mentioned above are regarded as relatively old and outdated symbols. Among them, Lincoln's annual sales in the US in 2023 were less than 82000 units, which is lower than the quarterly sales of other luxury car brands such as Mercedes Benz, BMW, and Audi.
Although General Motors has not explicitly stated that it will stop selling the Enclave, it emphasizes the importance of the government setting clear policies on safety issues. Ford has not yet commented on this. According to this new regulation, car manufacturers will be forced to seek alternative suppliers to cope with the upcoming ban.
The Automotive Innovation Alliance, representing multiple car manufacturers, pointed out that although the current number of connected vehicles imported from China is relatively small, the proposal will require manufacturers to seek alternative suppliers in certain situations. Some manufacturers may need more time to comply with regulations. Kanon added that companies can apply for "specific authorization" to continue selling vehicles or components, which will affect Chinese companies such as BYD North America operating in the United States.
It is worth noting that in mid month last month, the Texas prosecutor's office sued General Motors for allegedly collecting driver privacy data without permission, highlighting the urgency of data security and privacy issues in the US market. According to the investigation, General Motors collected detailed data from at least 16 million drivers and sold it to insurance companies for millions of dollars in profit.
This behavior has attracted the attention of the public and regulatory agencies. Legal documents show that multiple car manufacturers, including Hyundai, Tesla, and Ford, closely link data collection with optional features, which may lead to the abuse of user data.
Since 2005, at least five Chinese domestic brands have attempted to enter the US market, but all have ended in failure. So far, there are no Chinese cars sold in large quantities in the US market. The introduction of this new regulation has a clear intention, mainly targeting Chinese brands.
However, the ripple effect of sanctions seems to first harm domestic American car companies. This series of events makes the new regulations seem like a double-edged sword, and the ultimate victims may actually be the American brands themselves who attempt to use policy measures to exclude competitors.
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