Trump administration permits Volvo to continue selling connected cars in the US

The Trump administration has granted Volvo permission to continue selling connected vehicles in the United States. Volvo, majority-owned by China's Geely Holdings, says it can now proceed with expansion plans for its American factory.

Volvo Cars has received the green light from the Trump administration to keep selling its connected vehicles in the United States, a significant win for the Swedish automaker that is majority-owned by Chinese conglomerate Geely Holdings.

The decision removes a major cloud of uncertainty that had been hanging over Volvo's American operations, given growing US regulatory scrutiny of vehicles linked to Chinese ownership. Connected cars — vehicles equipped with internet connectivity, sensors, and data-sharing capabilities — have become a point of contention in Washington amid broader concerns about data security and foreign access to US infrastructure.

With the permit now secured, Volvo says it is free to move forward with expansion plans at its manufacturing facility in the United States. The company has been investing in its American presence as part of a broader global growth strategy, and the regulatory approval is expected to accelerate those efforts.

The ruling is notable given the broader geopolitical tensions between Washington and Beijing, which have prompted the US government to tighten rules around Chinese-linked technology and vehicles. Volvo's case was closely watched by the automotive industry as a potential indicator of how the administration would handle similar situations involving other foreign-owned manufacturers with Chinese ties.