The estimate is provided by the Washington Department of Commerce. Among the reasons is the possible increase in costs that manufacturers would face to sell vehicles in the United States
The ban on the use of Chinese hardware and software on vehicles circulating in the United States (a ban that would extend to Chinese vehicles connected to the internet) proposed by the Biden administration it could cost the American auto market more than 25,000 vehicles a year. This was declared by the Washington Department of Commerce. The reason? The increase in prices that American companies, together with all the brands that sell cars in the United States, could face for the production of vehicles to be marketed in the USA. An increase in costs that the companies would pass on to the final price of the product, making it less competitive.
How many vehicles would the legislation cost?
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The US Department of Commerce estimated that Between 1,680 and 25,841 fewer vehicles could be sold if the legislation is approved. The proposal to ban Chinese hardware and software, as well as Chinese vehicles connected to the internet, stems from national security reasons. According to the Commerce Department, this ban would lead to “a reduction in the possibility of a catastrophic attack due to data mining and remote manipulation of connected vehicles.” The ban would take effect from model year 2027 regarding software and from model year 2030 or from January 2029 for hardware.
gm e ford
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The same department has already announced that General Motors and Ford, two giants of the American automotive industry, should stop importing vehicles produced in China to then be sold in the USA if this proposal becomes law. GM and Ford assemble the Buick Envision and Lincoln Nautilus respectively in China and then market the two models in the United States. In the first 6 months of 2024, approximately 22,000 Envisions and 17,500 Nautilus were registered in the USA.
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2024-10-05 12:55:12
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