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    Home » Commentary: Does Volvo’s Chinese ownership threaten US national security?
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    Commentary: Does Volvo’s Chinese ownership threaten US national security?

    morshediBy morshediFebruary 1, 2025No Comments2 Mins Read
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    Commentary: Does Volvo’s Chinese ownership threaten US national security?
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    CONSUMERS LEFT WITH FEWER CHOICES AND HIGHER PRICES

    A serial acquirer of worldwide automotive manufacturers and the one Chinese language agency with important US gross sales, Geely is uniquely affected by Washington’s crackdown: Volvo’s money-losing EV offshoot Polestar, which is majority owned by Li and Geely associates, faces a lot the identical points and warned in an October authorities submitting that the principles would “successfully prohibit” it from promoting automobiles within the US, together with ones manufactured at Volvo’s South Carolina facility.

    Lotus Expertise, which can also be majority owned by Li and Geely associates, has additionally warned of a possible gross sales affect. 

    However there are wider repercussions. Automakers have lengthy tapped native suppliers and tailored automobiles for native tastes, notably in China. But as provide chains bifurcate to expunge Chinese language tech from US automobiles, the business faces elevated complexity and duplicated spending, compounding the monetary and operational complications from tariffs and the differing speeds by which nations are adopting electrical automobiles.   

    Automakers “might more and more ringfence their ‘in China for China’ or ‘within the US for the US’ operations,” word researchers at Rhodium Group. Customers could also be left with fewer selections and fewer innovation, or pay greater than they in any other case would, or all the above. (The US has already imposed a 100 per cent tariff on Chinese language EVs.)

    Volvo collaborates with different Geely-owned entities in areas similar to analysis and growth, procurement and manufacturing; its fast-selling EX30 electrical compact SUV shares technical underpinnings with different Geely fashions, for instance.



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