Industry Weighs in on Proposed Rule to Bar Chinese Vehicles
Trade group says aim of measure and effort to collaborate with automakers are on the right track but that the rule needs tweaking.

'You can’t just flip a switch and change the world’s most complex supply chain overnight,' said Alliance for Automotive Innovation's president and CEO.
Pexels/Kelly
A U.S. Commerce Department proposal to effectively bar Chinese vehicles from the U.S. is a good-faith effort toward national security but could complicate domestic carmakers’ business, according to one auto industry advocate.
The proposed rule, announced by the Biden administration on Monday, would ban the sale or import of connected vehicles with technology from China and Russia, as well as the technologies themselves.
“Chinese automakers are seeking to dominate connected vehicle technologies in the United States and globally, posing new threats to our national security, including through our supply chains,” a White House statement said. “The Biden-Harris Administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign threats.”
The Alliance for Automotive Innovation, an industry trade group and lobbyist, said the proposal’s aim is shared by automakers and resulted from a “thoughtful, thorough and consultative process” but that the lead time it would afford, if approved, might be too short for some automakers.
"There's actually very little technology - hardware or software - in today's connected vehicle supply chain that enters the U.S. from China. But this rule will require auto manufacturers in some cases to find alternate suppliers," said a statement by the alliance's president and CEO, John Bozzella.
“I’ve said this in other contexts, but it applies here too,” he said. “You can’t just flip a switch and change the world’s most complex supply chain overnight. It takes time.”
Bozzella said the alliance will follow the rule-making process and offer insight along the way “that reflects industry realities and achieves our shared national security goals.”
The Biden announcement pointed out that, “Now more than ever, vehicles are directly connected into our country’s digital networks,” and that such connectivity “creates opportunities to collect and exploit sensitive information” about U.S. infrastructure and the vehicles themselves.
LEARN MORE: Report Urges Utilities, Regulators to Prep for EV Future
More Industry

Holman Opens New Lexus Dealership
Located in the heart of Clark County, Lexus of Vancouver features a multi-level showroom, more than 30 service bays, an indoor drive for drop-off and pick-up and a fleet of courtesy vehicles.
Read More →
Denver Ferrari Store in New Group
The recent sale of the dealership by Lithia adds to an expanding stable for a family-owned collection of franchises.
Read More →
Nissan Reports Significant Sales Growth
Following the release of Nissan’s 2025 fiscal year report, the automaker announced that its retail-first approach has led to a significant jump in dealer sales.
Read More →
Dealer Debrief: Effective Safety Features
In this week's debrief, host Lauren Lawrence covers a positive safety study from GM and the University of Michigan Transportation Research Institute and a business acquisition by Cox Automotive.
Read More →
Recalled Autos Spike in Q1
The volume of affected units continued to rise as more software-focused models present different types of problems, creating complex risk, Sedgwick reports.
Read More →
Program Brings Wheels to Families in Need
NADA is taking Vehicles for Change’s Keys to Independence Program national so auto dealers can help families in need gain access to reliable transportation.
Read More →
EFG Aims to Help Dealers Face Rising Reinsurance Volatility
Rising claims severity, higher repair costs and delayed reserve adjustments are putting new pressure on auto dealerships' reinsurance programs.
Read More →
Hybrids in Focus
Another automaker announces plans to dedicate more resources in the U.S. to the now popular power train as it also looks to minimize trade tariff costs.
Read More →
IIHS Adds to Safety Rankings
A midsize Hyundai and a small Toyota have joined the nonprofit's 2026 Top Safety Pick+ award rankings, thanks to improved crash test results and crash-prevention measures.
Read More →
Dealer Debrief: FTC and Pricing
In this week's debrief, host Lauren Lawrence covers long loan terms, the FTC's crackdown on pricing, and disaster prep for dealerships.
Read More →