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The company had “significant dialogue” with American authorities and believes an appeal would lead nowhere.
- Polestar is not challenging the U.S.’s decision to ban its cars from the 2027 model year.
- The company said it will not appeal the ban, leaving dealers starving for answers.
- The federal government banned the Chinese-owned EV maker from selling future models stateside over national security concerns.
Polestar fans in the United States should probably look for another car brand to follow, as the company has decided not to challenge the federal government’s recent ban. As a reminder, the Chinese-owned automaker’s future electric models were banned from the U.S. over national security concerns.
The Geely-backed EV-only manufacturer could have asked the U.S. Commerce Department to reconsider its decision, or it could have gone to court, especially since Volvo, which is also owned by Geely, was allowed to continue to sell connected vehicles stateside. However, Polestar has decided to exit the U.S. market, the company’s spokesperson told The Wall Street Journal.
The ban affects 2027-model-year vehicles and newer, and Polestar will continue to sell its remaining inventory stateside, but after the lots go empty, it’s the end of the road for the company here.
Polestar’s spokesperson added that the automaker had “significant dialogue” with U.S. authorities and didn’t believe an appeal would have succeeded. As a result, the marque is shifting its attention to other markets where it has seen significantly more success.
That said, all of this leaves 32 dealers in the U.S. waiting for answers. “We deserve some answers,” said Matthew Haiken, one of the biggest Polestar dealers in the U.S., for the WSJ. Besides questioning why the automaker is not appealing the ban, dealers are also wondering why the Polestar wasn’t able to get an approval like Volvo.
Some dealers, like Haiken, have spent millions of dollars to boost their presence after the automaker announced plans to launch more models in the U.S., like the Polestar 4 SUV.
Last year, the Swedish-based manufacturer sold just 5,747 EVs in the U.S., which accounted for just 6% of its global sales. Meanwhile, Europe accounted for the vast majority of sales, so pivoting away from America makes sense from a business perspective. And the company is wasting no time in trying to empty its inventory, slashing prices by up to $25,000.
