Polestar will not appeal the U.S. government’s decision to ban the company from selling vehicles in the United States, saying it concluded that an appeal had little chance of succeeding. The decision has disappointed the automaker’s U.S. dealer network, which had invested in facilities to support the brand.
Polestar Declines to Challenge U.S. Ban
Polestar has decided not to appeal the Commerce Department’s decision prohibiting the company from selling vehicles in the United States because of its links to China.
A spokesperson for the Geely-backed electric vehicle manufacturer said the company held “significant dialogue” with government authorities but did not believe an appeal had a reasonable chance of success.
Dealers Express Frustration
The decision has left Polestar’s U.S. dealer network frustrated. The company currently has 32 dealer locations across the United States, many of which invested time and resources to develop their facilities before the sales ban.
Mercedes-Benz Seeks Changes to Ownership Rule
In a related development, Mercedes-Benz is seeking changes to the proposed legislation that would ban automakers with more than 15% ownership by a Chinese entity.
According to the report, Mercedes-Benz exceeds that threshold by nearly 5%. A Senate committee hearing originally scheduled for the previous week has been postponed until this week.
Other Automotive Industry Developments
Acura is reportedly planning a new flagship three-row SUV that will be positioned above the MDX, with production expected to begin in 2029.
General Motors reported a 31% decline in second-quarter net income due to EV-related restructuring. However, the automaker raised its financial guidance after North American profits increased 43%.
Mercedes also introduced the Maybach version of the GLS SUV, powered by a new twin-turbocharged 4.0-liter V8 producing 603 horsepower and 627 lb-ft of torque.
Separately, Volkswagen reportedly considered offering the ID.Buzz with an optional gasoline-powered range extender to address range concerns but ultimately determined there was insufficient space to accommodate an engine.
Automakers Continue to Navigate Industry Changes
The latest developments highlight a range of challenges and strategic decisions across the automotive industry, from regulatory actions and ownership rules to new product plans and financial performance.
