S7-E38: Are Chinese EVs Being Banned? The Future of American Cars
About this episode
Delve into the complex reality of the US government's Connected Vehicle Rule and its immediate impact on brands like Polestar and Volvo. This discussion demystifies the upcoming 2027 software and 2030 hardware restrictions aimed at Chinese-linked technology, explaining how it affects American giants like GM and Ford. The conversation also tackles the true gap between Chinese and US EV tech, reveals why the Tesla Model 3 is crowned the most American-made car, and debunks long-standing myths surrounding US manufacturing quality versus Japanese imports.
In this episode we unpack why Polestar is leaving the U.S. market under new connected vehicle security rules, what the regulations mean for GM, Ford, and other automakers, and whether consumers should expect higher car prices. We also explore what makes a car "American" in 2026, why the Tesla Model 3 tops the American-Made Index, the truth about U.S.-built BMWs and Toyotas, and which new car we'd buy today.
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Polestar
"Can you explain why the US government is banning Polestar from selling its cars here in the US?"
A modern electric car brand that started as a performance division of Volvo, known for making sleek, minimalist EVs.
Polestar is a Swedish premium electric vehicle brand established by Volvo Cars and Geely. Originally a racing team and performance tuner, it was repositioned in 2017 as an independent manufacturer focused on high-performance electric cars.
connected vehicle
"The US Department of Commerce's Bureau of Industry and Security denied Polestar authorization under the Connected Vehicle Rule, which kicks in for model year 2027. This rule blocks the sale of connected vehicles, basically any modern car with internet, Bluetooth, cellular or satellite connectivity..."
A modern car that has its own internet connection (like a smartphone), allowing it to download updates, show live traffic, and connect to phone apps.
A connected vehicle is equipped with internet access and a local area network, allowing it to share data with other devices both inside and outside the vehicle. This enables features like over-the-air software updates, real-time navigation, remote diagnostics, and vehicle-to-everything (V2X) communication.
Geely
"Polestar is majority owned by Jili, a major Chinese automaker."
A massive Chinese car company that owns several well-known European brands, including Volvo and Polestar.
Zhejiang Geely Holding Group (Geely) is a major Chinese multinational automotive company. It owns several prominent global brands, including Volvo Cars, Polestar, Lotus, and Zeekr, and is known for its rapid expansion and integration of Western automotive technologies.
Polestar 3
"Even though some Polestar's, like the three, are built in South Carolina, ownership and the software stack matter more than assembly location."
A stylish, high-tech electric SUV made by Polestar, which is a modern electric car brand related to Volvo. It's designed to be fast, comfortable, and packed with advanced safety features.
The Polestar 3 is an all-electric mid-size luxury crossover SUV produced by Swedish automaker Polestar. It features a dual-motor powertrain with a rear-biased setup and is built on the SPA2 platform shared with the Volvo EX90.
Volvo
"Interestingly, sister brand Volvo, also owned by Jili, did get authorization, likely due to differences in corporate structure, data governance, software development location or longer US manufacturing history."
A famous Swedish car brand known for making some of the safest vehicles on the road, now owned by a Chinese parent company.
Volvo Cars is a Swedish luxury vehicle manufacturer headquartered in Gothenburg. Renowned historically for pioneering automotive safety innovations like the three-point seatbelt, the brand is currently owned by the Chinese conglomerate Geely.
over-the-air updates
"The focus is on connected vehicle systems, the software and hardware that handle internet connectivity, data transmission, location tracking, cameras and over the air updates."
Wireless software updates that your car downloads automatically over the internet, similar to how your smartphone updates its operating system overnight.
Over-the-air (OTA) updates refer to the wireless delivery of new software, firmware, or configuration settings to vehicles. This allows manufacturers to fix bugs, improve performance, or add new features to a car's infotainment or control systems without requiring a dealership visit.
Software Bill of Materials
"Many automakers are already auditing their software builds of materials, SBOMs and purging Chinese code or moving development elsewhere."
A complete list of all the software ingredients and code used to build a car's computer systems, helping engineers track down bugs or security risks.
A Software Bill of Materials (SBOM) is a formal, structured record containing the details and supply chain relationships of various components used in building software. In the automotive industry, it is increasingly used to audit cybersecurity risks and track third-party code origins.
Lincoln Nautilus
"They're already moving on it. Ford's applying for licenses for models like the Lincoln Nautilus, which is built in China that uses US developed software."
A quiet, comfortable luxury SUV from Lincoln that focuses on a smooth ride and a high-tech interior, including a massive screen that stretches across the entire dashboard.
The Lincoln Nautilus is a mid-size luxury crossover SUV. The second-generation model, introduced for the 2024 model year, is manufactured in Hangzhou, China, by the Changan Ford joint venture and features a prominent full-width dashboard display.
Buick Envision
"GM is shifting Buick and vision production from China to Kansas starting in 2028 and told suppliers to remove Chinese parts by 2027."
A premium compact SUV from Buick that offers a quiet cabin and upscale features at a lower price point than many European rivals.
The Buick Envision is a compact luxury crossover SUV. It is notable for being one of the first GM vehicles imported to the United States from China, where it is manufactured by the SAIC-GM joint venture.
Cruise
"But on core autonomous driving tech, the hard, reliable self-driving stuff, the US, especially Waymo and cruise tech still holds an edge in real world safety and capability, though China is closing the gap fast."
A self-driving car company backed by General Motors that tests and operates autonomous robotaxis.
Cruise LLC is an American self-driving car company headquartered in San Francisco, California, majority-owned by General Motors. It focuses on developing and deploying fully autonomous ride-hailing vehicles in urban environments.
Waymo
"But on core autonomous driving tech, the hard, reliable self-driving stuff, the US, especially Waymo and cruise tech still holds an edge in real world safety and capability, though China is closing the gap fast."
A self-driving car company owned by Google's parent company, Alphabet, that runs driverless taxi services in cities like San Francisco and Phoenix.
Waymo is an autonomous driving technology development company subsidiary of Alphabet Inc. Originally starting as the Google Self-Driving Car Project, it operates commercial autonomous ride-hailing services (Waymo One) in several major US cities.
Ford Edge
"...s just competing with China's cost and innovation edge. The rule is more about national security than pr..."
The Ford Edge is a mid-sized family SUV with five seats, made by the American company Ford. It is designed for comfortable daily driving and commuting.
The Ford Edge is a mid-size, two-row crossover SUV that filled the gap between the smaller Escape and the larger Explorer. It is discussed in the context of global trade and manufacturing shifts, as Ford phased out North American production of the Edge to pivot toward electric vehicles and other global platforms.
Tesla Model 3
"What is the most American car now in 2026? The most American car right now in 2026 is the Tesla Model 3."
A popular, sporty electric sedan made by Tesla. It is known for its long driving range, fast acceleration, and minimalist interior dominated by a single large screen.
The Tesla Model 3 is an all-electric four-door compact sedan. It features a minimalist interior with a central touchscreen and a rear- or dual-motor all-wheel-drive electric powertrain, with the 2024 'Highland' refresh bringing improved aerodynamics and cabin quietness.
American-Made Index
"It tops the widely referenced Cars.com American-Made Index, which ranks vehicles based on US final assembly, percentage of US Canadian parts content, where engines and transmissions are made, and the manufacturer's US workforce."
A yearly list that ranks cars based on how much of their manufacturing, parts, and labor actually come from the United States, showing that some 'foreign' brands are actually highly American-made.
The Cars.com American-Made Index is an annual independent ranking that evaluates which vehicles contribute most to the US economy. It scores cars based on assembly location, percentage of domestic parts, country of origin for engines and transmissions, and US manufacturing workforce size.
Tesla Model
"...re made, and the manufacturer's US workforce. The Tesla Model Y comes in second, followed by the Jeep Gladiator..."
The Tesla Model Y is a fully electric, mid-sized family SUV made by Tesla. It is slightly taller and roomier than the Model 3, offering more cargo space and an elevated seating position.
The Tesla Model Y is an all-electric compact crossover utility vehicle that shares its platform and many components with the Model 3 sedan. It is one of the best-selling vehicles globally and ranks near the top of the American-Made Index due to its high percentage of domestic parts and US-based manufacturing.
Jeep Gladiator
"...sla Model Y comes in second, followed by the Jeep Gladiator and Jeep Ram Cherokee. Honda actually has a ton o..."
The Jeep Gladiator is a four-door pickup truck made by Jeep that looks like a Wrangler with a truck bed attached to the back. It is designed for driving on rough, unpaved roads and has a roof and doors that can be completely removed.
The Jeep Gladiator is a mid-size pickup truck that combines the off-road capability and styling of the Wrangler with a functional truck bed. It is discussed for its high ranking on the American-Made Index, reflecting its assembly in Toledo, Ohio, using a high percentage of domestic components.
Honda Passport
"...n top 10, like the Ridgeline, Odyssey, Accord and Passport, showing how foreign brands with heavy US manufac..."
The Honda Passport is a mid-sized SUV that has two rows of seats and is built for families who want a bit more space and capability for outdoor adventures. It is made by Honda in an American factory.
The Honda Passport is a mid-size, two-row crossover SUV designed to offer more rugged off-road capability than the smaller CR-V. Built in Lincoln, Alabama, it ranks highly on the American-Made Index due to its domestic assembly and parts sourcing.
Honda Odyssey
"...as a ton of models in top 10, like the Ridgeline, Odyssey, Accord and Passport, showing how foreign brands ..."
The Honda Odyssey is a large family minivan with sliding side doors, designed to carry up to eight passengers comfortably. It is built by Honda in the United States and focuses on safety and convenience for families.
The Honda Odyssey is a premier minivan celebrated for its spacious cabin, family-friendly features, and smooth ride. It is manufactured in Alabama, making it a prominent example of a foreign-brand vehicle with deep manufacturing roots in the United States.
Honda Accord
"...of models in top 10, like the Ridgeline, Odyssey, Accord and Passport, showing how foreign brands with hea..."
The Honda Accord is a traditional, gasoline-powered or hybrid four-door family car made by the Japanese company Honda. It is widely known for being dependable, comfortable, and easy to drive.
The Honda Accord is a mid-size sedan known for its reliability, fuel efficiency, and refined driving dynamics. Despite being a Japanese brand, it is heavily manufactured in Marysville, Ohio, placing it high on lists of American-made vehicles.
Honda Ridgeline
"... actually has a ton of models in top 10, like the Ridgeline, Odyssey, Accord and Passport, showing how foreig..."
The Honda Ridgeline is a mid-sized pickup truck that drives more smoothly than traditional trucks because it is built like an SUV with an open cargo bed in the back. It is made by Honda in the United States.
The Honda Ridgeline is a mid-size pickup truck that utilizes a unique unibody construction, offering car-like ride comfort and handling. Built alongside Honda's SUVs in Alabama, it consistently ranks as one of the most American-made trucks on the market.
BMW X5
"And this week BMW, which has been building cars here in the US since 1994, debuted the 2027 BMW X5."
A high-end, sporty SUV from BMW that is designed to drive more like a sports sedan than a traditional heavy truck. It is highly popular and built in South Carolina.
The BMW X5 is a mid-size luxury SUV that pioneered the 'Sports Activity Vehicle' segment. It is primarily manufactured at BMW's Spartanburg plant in South Carolina for global markets, offering a blend of sporty handling, premium interior, and powerful inline-six or V8 engines.
Spartanburg Plant
"The 2027 BMW X5 is built at BMW's Spartanburg Plant in South Carolina, BMW's biggest factory in the world, where they've been making X models since 1994."
A massive factory in South Carolina where BMW builds almost all of its popular SUVs, exporting them to countries all over the world.
BMW's Spartanburg Plant, located in Greer, South Carolina, is the German automaker's largest production facility globally. Opened in 1994, it specializes in manufacturing BMW's 'X' family of crossover SUVs for both domestic sale and global export.
Toyota Tundra
"What happened recently is that Toyota, along with Nissan, is importing US built models like the Tundra and Highlander starting in 2026..."
A large, powerful pickup truck built by Toyota in Texas. It is designed for towing and hauling, using a modern twin-turbo engine instead of an old-school V8.
The Toyota Tundra is a full-size pickup truck. The third-generation model, introduced for 2022, transitioned to a fully twin-turbocharged V6 powertrain (including an optional i-FORCE MAX hybrid) and a multi-link rear suspension, moving away from the traditional V8.
fit and finish
"The warning is only about cosmetic and fit and finish differences."
How well a car is put together physically—specifically looking at whether the body panels line up perfectly, the paint is flawless, and the interior parts feel tight and solid.
Fit and finish refers to the quality of assembly and visual alignment of a vehicle's exterior and interior components. It encompasses panel gap consistency, paint quality, trim alignment, and the absence of squeaks or rattles in the cabin.
panel gaps
"Things like thinner paint, possible polishing marks, minor color variations, dense in the paint, or slightly larger panel gaps."
The small spaces between the metal parts of a car's body (like where the door meets the frame). If these spaces are uneven, it can make the car look poorly built.
Panel gaps are the spaces or tolerances between adjacent exterior body panels on a vehicle, such as between a door and a fender. Consistent, narrow panel gaps are a primary indicator of high manufacturing precision and quality control.
Toyota Camry Hybrid
"I'd buy the 2026 Toyota Camry Hybrid. It's Consumer Reports' top pick for mid-sized cars with strong reliability scores..."
A very reliable, comfortable mid-sized family car that uses both a gas engine and electric motors to get incredible fuel economy, saving you a lot of money on gas.
The Toyota Camry Hybrid is a mid-size sedan powered by Toyota's highly efficient hybrid synergy drive system, combining a 2.5-liter four-cylinder engine with electric motors. The 2025 model year marked the transition of the Camry lineup to an all-hybrid powertrain configuration in the US.
Honda Civic Hybrid
"If I wanted something smaller and more fun to drive, I'd go for the Honda Civic Hybrid instead."
A compact, fun-to-drive car that uses a hybrid system to get great gas mileage without sacrificing pep or interior space.
The Honda Civic Hybrid features Honda's dual-motor hybrid system, which pairs a 2.0-liter four-cylinder engine with two electric motors. This setup delivers strong acceleration alongside excellent fuel economy, serving as a spiritual successor to the Civic Insight.
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