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US to Restrict Foreign Software in Connected Vehicles

US to Restrict Foreign Software in Connected Vehicles

The US government plans to introduce new restrictions on foreign software in “connected vehicles” next month. Cars made in or imported to the US must comply with data collection and storage policies that keep the information in an “allied country.”

The restrictions will focus on key components and software managing vehicle data. “A modern car has a lot of software in it. It knows a lot about you,” said Alan Estevez, Under Secretary of Commerce for Industry and Security.

Although Americans aren’t currently buying many foreign-branded cars, some foreign manufacturers have ties to popular automakers in the US, such as Volvo and Polestar. It’s unclear how these manufacturers might be impacted.

Earlier this year, the Biden administration raised concerns about foreign-made vehicles and EVs posing national security risks. In response, the White House announced import fees on foreign chips and EVs, citing “unfair practices.”

The US might implement restrictions similar to those in other countries, making it harder for foreign firms to test self-driving cars on US roads or use foreign vehicle software without a US partner. These actions are part of ongoing efforts to address tech vulnerabilities and secure connected vehicles.