GM·Hyundai Motor Request at Least 1-Year Delay on China Connected Car Regulations in the US

The Auto Alliance of Innovation (AAI), representing major automakers selling vehicles in the U.S. such as General Motors (GM) and Hyundai Motor Company, has requested the U.S. government to delay the implementation of regulations on Chinese-made hardware and software related to connected vehicles by at least one year.

According to major foreign media on the 28th (local time), AAI submitted comments asking for a one-year postponement of the regulation that gradually bans the sale of vehicles using Chinese or Russian parts for autonomous driving or communication functions. Currently, the regulation is set to apply to software starting with 2027 model year vehicles, and hardware starting with 2030 model year vehicles or those produced from January 2029.

Concerned that China could collect vast amounts of data from many Americans through connected car systems, the U.S. government announced on the 23rd of last month a regulatory proposal banning the import and sale of vehicles equipped with certain hardware or software linked to China or Russia in Vehicle Connectivity Systems (VCS) or Automated Driving Systems (ADS).

In response, John Bozzella, president of AAI, expressed concern in a previous statement, saying, "Thanks to the preparation period included in the regulation, some automakers will be able to make the necessary transitions, but for others, the period may be too short." AAI is an organization that advocates to the government and Congress on behalf of the U.S. automotive industry, and its membership includes not only automakers such as Hyundai Motor Company, GM, Toyota, and Volkswagen but also related companies in batteries, semiconductors, and more.

The Mexican government also submitted comments to the U.S. Department of Commerce, stating that "this will have a significant impact on the Mexican automotive industry," and specifically warned that it could lead to potential trade barriers, supply chain disruptions, increased production costs, and direct and indirect job losses. Given that Chinese automakers including BYD have been investing in Mexico recently, the Mexican government is also reviewing the possibility that the regulation may violate the United States-Mexico-Canada Agreement (USMCA), a regional free trade agreement (FTA).

The Korean government, in comments submitted to the U.S. Department of Commerce last April, stated, "The Korean automotive industry expresses concerns that the broad scope of the connected vehicle supply chain investigation, the uncertainty surrounding the range of potential regulatory targets, and the timing of enforcement could all impose a significant burden on the industry," and requested that sufficient time be given to the industry before the new regulations are implemented.

This content was produced with the assistance of AI translation services.