Polestar CEO Says ‘The Days Are Over’ for Global Carmaking After US Sales Ban

Polestar CEO Michael Lohscheller says the era of truly global automotive manufacturing is coming to an end after the company was barred from selling new electric vehicles in the United States beginning with the 2027 model year.

The executive said the decision reflects a broader shift toward regionalized vehicle production and market strategies as governments tighten regulations surrounding connected vehicle technologies.

Polestar shifts focus after US sales ban

Speaking to the Financial Times, Lohscheller said Polestar will not appeal the U.S. government’s decision, opting instead to concentrate on expanding in Europe and other international markets.

“I think it just accelerates the regionalisation everywhere, not only for us but for the entire industry,” Lohscheller said. “The days are over when everything was global.”

The decision stems from the U.S. Connected Vehicle Rule, which restricts the sale of vehicles containing certain hardware or software linked to China or Russia. Although Polestar manufactures the Polestar 3 in South Carolina and builds the Polestar 4 in South Korea, the Geely-owned automaker was denied the authorization required to continue selling new vehicles in the United States.

Lohscheller described the outcome as something the company must accept, saying Polestar will instead prioritize growth in markets including Europe, South Korea, and Australia.

The decision surprised many within the automotive industry, particularly because fellow Geely-owned automaker Volvo Cars received approval to continue selling connected vehicles in the United States after demonstrating compliance with U.S. data handling requirements.

US exit comes as Polestar clears inventory

Polestar said it will continue selling its remaining inventory of Polestar 3 and Polestar 4 vehicles already in the United States while continuing to support existing customers through service and warranty programs.

The company has introduced significant discounts on remaining inventory as it works to clear dealer stock before the sales restriction takes effect.

The U.S. market represented a relatively small portion of Polestar’s business before the decision. During the first half of the year, the automaker sold 1,861 vehicles in the United States, a 28% decline from the same period a year earlier following the expiration of federal EV tax incentives.

Europe remained Polestar’s largest market, accounting for nearly 80% of the company’s 30,423 global deliveries during the first half of the year.

Looking ahead, Lohscheller said the company still sees substantial opportunities for growth despite intensifying competition from Chinese automakers in Europe, emphasizing that many global EV markets remain underpenetrated.

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