According to Reuters, on September 27, the U.S. Department of Commerce said that if proposed U.S. rules restricting the use of Chinese hardware and software in connected and self-driving cars are enforced, U.S. auto sales could drop by as much as 25,841 units per year and vehicle prices could rise.
The U.S. Department of Commerce has said that U.S. automakers and other companies selling vehicles in the U.S. could become less competitive in the global marketplace because their vehicles sell at relatively higher prices. It is estimated that between 1,680 and 25,841 fewer vehicles will be sold in the United States each year as a result of the latest U.S. ban.
The U.S. Department of Commerce estimates that the total value of U.S. bans on imports and sales of vehicles and parts from Chinese or Russian companies could be between $1.5 billion and $2.3 billion.
Previously, the U.S. Department of Commerce said that the proposal would constitute an effective ban on Chinese cars because all Chinese cars will be equipped with hardware and software that can connect to the Internet, but the proposal would also allow car companies to seek “special exemptions” to continue to sell Chinese-made cars or auto parts.
The U.S. Department of Commerce also proposed that the ban on Chinese software would take effect in the 2027 model year, and the ban on Chinese hardware would take effect in January 2029 or the 2030 model year. However, the U.S. will open a 30-day public consultation platform before finalizing the official regulations. The U.S. Department of Commerce said the main benefit of the ban would be to “reduce the risk of catastrophic attacks due to data breaches and remote manipulation of Internet-connected vehicles.”
This week, the U.S. Commerce Department said GM and Ford would need to stop importing cars from China under the proposed rule. Currently, in the U.S. market, the Buick Envision sold by GM and the Lincoln Nautilus sold by Ford are assembled in China. In the first half of this year, GM sold about 22,000 Enclaves in the U.S., while Ford sold 17,500 Nautilus SUVs.