The New Cold War: Why Your Car Is Caught in the Middle

The host frames today’s geopolitical rivalry as a “New Cold War,” focused less on direct military battles and more on competition for technology, data, and supply chains. In this episode, that sets up why modern cars—full of electronics and software—are affected by global tensions.

Semiconductors are the electronic components that act as the “building blocks” for modern electronics, including the chips inside ECUs and infotainment systems. Because cars rely on huge numbers of them, chip supply and manufacturing capacity can directly affect vehicle availability and capabilities.

Electronic control units (ECUs) are small computers distributed around a vehicle that control specific functions like engine management, transmission behavior, braking assistance, and infotainment. They take sensor inputs and run control software to decide what actions to command.

ECUs are the shorthand for electronic control units—small dedicated computers that manage different vehicle systems. In modern cars, there can be dozens to over a hundred of them working together.

Radar is a sensor technology that uses radio waves to detect objects and estimate their distance and relative motion. In cars, radar is commonly used for adaptive cruise control and collision-avoidance systems.

LiDAR (Light Detection and Ranging) is a sensing method that measures distances by firing laser pulses and analyzing how they reflect. It can create a detailed 3D map of the car’s surroundings, which is useful for advanced driver-assistance systems.

Over-the-air (OTA) software updates are downloads sent to a vehicle wirelessly, allowing the car to update its software without a dealer visit. Automakers use OTA updates to add features, improve performance, and fix bugs or safety-related issues.

Artificial intelligence (AI) in cars refers to software that can interpret sensor data and make decisions, such as recognizing objects, predicting behavior, or assisting with driving tasks. It’s typically used to power advanced driver-assistance features and smarter vehicle functions.

“Self-driving cars” are vehicles that use sensors, software, and computing to automate driving tasks like steering, speed control, and lane keeping. In practice, most systems are “driver-assist” or limited automation rather than fully autonomous in all conditions.

Waymo is Google’s self-driving car company. When people say “Waymos,” they usually mean Waymo’s autonomous vehicles operating in public areas.

All-wheel drive (AWD) is a drivetrain setup where power can be sent to all four wheels. It’s often used to improve traction in low-grip conditions like rain, snow, or dirt.

Two-wheel drive (2WD) is a drivetrain configuration where power is delivered to only two wheels, typically the front or the rear. Compared with AWD, it can be simpler and sometimes more efficient, but it may offer less traction in poor weather.

Electric vehicles (EVs) are cars powered primarily by electric motors and rechargeable batteries, rather than a gasoline engine. The supply chain for EVs includes batteries, power electronics, and critical materials.

Rare earth minerals are a group of elements used in many high-tech components. They’re especially important for semiconductors, battery chemistry, electric motors, and other modern electronics.

Electric motors convert electrical energy into mechanical motion, providing propulsion in EVs and many hybrid vehicles. Their performance depends on materials and electronics, including magnets and power-control components.

“Energy intensive” means a process uses a lot of energy to produce something. In the context of car supply chains, it often points to high-energy manufacturing steps like refining materials and making batteries.

“Strategic industries” are sectors a government considers critical to national interests, such as defense, energy, or technology supply. In this segment, EV-related manufacturing (batteries, chips, refining, and production capacity) is treated as strategic because it affects economic power and resilience.

“Battery factories” are industrial plants built specifically to manufacture batteries at scale. For EVs, the battery is the most complex and supply-constrained component, so building battery factories is a major part of a country’s ability to produce electric cars.

“Computer chips” are semiconductor components used in modern vehicles for control systems, infotainment, sensors, and power electronics. Automakers rely on them heavily, so chip supply and manufacturing capacity can directly affect how many cars get built.

“Supply chains” are the network of companies and steps that take raw materials to finished products. In EV production, supply chains include battery materials, refining, electronics (chips), and manufacturing capacity—so disruptions or control of supply chains can become strategic.

A “national security story” frames industrial competition—like EV and battery production—as a matter of geopolitical risk and strategic independence. The idea is that if one country controls critical manufacturing, it can influence supply during conflicts or political disputes.

BYD is a Chinese automaker that has grown rapidly in electric vehicles, including battery-electric cars and plug-in hybrids. In this segment, the host emphasizes that BYD is a major global EV producer even though it isn’t sold in the United States.

Plug-in hybrids are vehicles that combine an internal-combustion engine with an electric motor and a battery that can be charged from an outlet. They can run on electricity for some distance, but they also have a gasoline engine for longer trips.

A 100% tariff means the import tax is equal to the value of the car being imported—effectively doubling the price before other costs. The host uses this to show how a roughly $30,000 EV can become about a $60,000 car in the U.S. after import costs.

EVs are electric vehicles, and “Chinese EVs” refers to electric cars manufactured in China. The host connects these imports to US policy (tariffs) and to concerns about technology and data flows.

Data collecting technology in cars refers to systems that gather information—like location, driving behavior, and device/phone interactions—and send it to servers. The host frames this as a national-security and privacy concern tied to connected vehicles.

The host revisits a prior episode’s theme: modern cars collect lots of personal and behavioral data. This segment frames that data collection as the “next chapter” in the story of cars spying on owners.

“Rolling computer” is a way to describe a modern car’s many onboard computers (ECUs) that run software and connect to networks. The host uses it to emphasize that the car can collect and transmit data like other internet-connected devices.

A connected device is an electronic product that can communicate over the internet or other networks. The host’s point is that once a car is internet-connected, it behaves more like a phone or smart gadget than a standalone machine.

Being connected to the internet means the car can exchange data with external servers and services. The host uses this to argue that the car becomes part of the same data ecosystem as phones and other smart devices.

Voice commands refer to in-car systems that listen to spoken input and convert it into actions or requests. When a vehicle records voice, it increases the amount of personal data processed by the car and potentially transmitted to cloud services.

A manufacturer’s servers are the backend computers run by the automaker that connected cars contact to exchange data and receive services. In a connected-car context, this is where telemetry, account/vehicle status, and update delivery can be managed.

Using a national security lens means evaluating connected-car technology primarily for risks to a country—like data theft, surveillance, or potential remote manipulation. It reframes the usual consumer focus (features and convenience) into government-level threat assessment.

A connected vehicle is a car that can communicate over the internet (or cellular networks) with other systems—like the automaker’s servers, apps, and sometimes other vehicles. That connectivity enables features such as remote services, live data sharing, and over-the-air updates.

BIS stands for the Bureau of Industry and Security, a U.S. government agency that enforces export/import and national-security rules. In this context, it’s tied to a connected-vehicle rule that affects what automakers can sell in the U.S.

The Kia Telluride is a midsize three-row SUV that’s commonly discussed because it offers family-friendly space and practicality, making it a frequent choice for people shopping for a larger vehicle. In the podcast context, it’s mentioned alongside a “new Kia Telluride hybrid” that’s expected to be available on dealer lots. That makes it relevant to talk about because it signals a shift toward electrified power while keeping the same core SUV role.

OnStar is a connected-safety and telematics service that provides features like emergency assistance and other vehicle-connected functions. It’s mentioned as an example of the kinds of connected services that can make a car qualify as a “connected vehicle.”

A declaration of conformity is a formal statement by a manufacturer that a product meets required regulatory requirements. Here, automakers must file it as part of the process to import or sell connected vehicles in the U.S.

A supply chain due diligence audit is a structured review of where key parts and technologies come from and how risks are managed. In this rule, automakers must assess their connected-vehicle software/hardware supply chain before importing or selling in the U.S.

A self-certification system means the manufacturer declares compliance itself, rather than waiting for an outside agency to approve the design before sales. Even though it’s “self” administered, it can still be legally binding if the claims are false.

National security violations refer to conduct that could threaten a country’s safety or strategic interests. In this context, the speaker is saying compliance failures could be treated as a security issue, not just a consumer-safety or emissions issue.

“Sufficient nexus” is a legal threshold meaning there’s enough connection between a company (or its ownership/control) and a restricted party or risk category. If that threshold is met, the company may be blocked from using the normal compliance pathway.

Special authorization is an extra permission process outside the normal compliance declaration. Here, it’s described as a waiver-like approval needed for certain automakers to continue selling cars in the US.

Polestar is Volvo’s EV-focused luxury brand, known for building electric vehicles designed around software and modern connected-car features. In this episode, Polestar is used as a real-world example of how the new connected-car compliance rules can affect sales eligibility.

Volvo is the Swedish automaker that the speaker ties to Polestar as the parent relationship. The episode highlights Volvo’s ownership/control link to Geely and how that affects regulatory authorization outcomes.

Geely is described here as the Chinese automotive group that majority owns and controls both Volvo and Polestar. The speaker’s argument is that this ownership/control structure triggers the “special authorization” requirement under the connected-car rule.

“Sustainable experience architecture” is a platform strategy Geely uses across its electric vehicles. The speaker claims it’s built around tightly integrated software, hardware, and a supply chain connected to China—relevant because the connected-car rule is sensitive to that integration.

The Volvo EX90 is Volvo’s fully electric SUV, positioned as a larger, family-focused EV in the brand’s modern lineup. It’s often discussed because Volvo is using it to showcase its latest approach to electric power, safety technology, and how the company structures its EV platform strategy. In a conversation about multiple Volvo EVs (EX30/EX40/EX60/EX90), it’s a key example of the “bigger” model in that range.

The Polestar EX60 is one of the EX-series EVs listed in the segment. The host’s point is that these models are described as being built on a different European-developed platform than Polestar’s, which is central to the compliance argument.

A connected car rule is a government requirement that governs how vehicles with internet connectivity (telematics, cloud services, data exchange) must handle cybersecurity and data access. In this segment, the host says the rule was developed under a previous U.S. administration, gained bipartisan support, and took effect in March 2025.

Data security protocols are the defined procedures and technical safeguards used to protect vehicle data from unauthorized access or tampering. In this segment, Volvo is said to have presented its data security protocols to U.S. regulators as part of proving its connected cars are safe from Chinese influence.

Polestar is an EV brand whose cars in this segment are described as being built on a Chinese platform, meaning much of the underlying technology is sourced from China. The host links that to U.S. compliance pressure and claims Polestar will exit the U.S. market and pull production from its South Carolina plant.

A Chinese platform, as used here, refers to the underlying vehicle technology base—hardware, software stack, and systems—being developed or sourced from China. The host argues that if a car is built on such a platform, it may struggle to meet U.S. connected-car compliance requirements related to influence and security.

Warranty claims are requests to have repairs covered under a vehicle’s warranty terms. The host says affiliated Volvo dealerships are expected to remain able to maintain warranties and satisfy existing warranty claims until those warranties expire.

A lease vehicle is a car you’re using under a lease contract rather than owning it outright. The host says lease customers should be able to return their Polestar lease vehicles under the original terms, and recommends not buying the car out.

Resale value is the price a car is expected to sell for after you own it, typically in the used market. The host warns that Polestar resale values may “plummet” due to dealer fire sales and uncertain future service/support, which can make buying out a lease risky.

A fire sale is an aggressive, fast liquidation of inventory at sharply reduced prices. The host says dealers are already doing fire sales on remaining new Polestar inventory to clear lots, which can pressure used-car prices downward.

The Lincoln Nautilus is a midsize luxury SUV from Lincoln (Ford’s luxury brand). In this segment, it’s used as an example of a vehicle whose production and parts sourcing involve China, which matters when governments impose trade or compliance rules.

The Buick Envision is a compact-to-midsize luxury crossover from Buick. Here it’s brought up alongside the Lincoln Nautilus as an example of a car made in China with significant Chinese parts content, which becomes relevant under geopolitical and regulatory pressure.

In this context, “waivers” are official exceptions that allow automakers to meet (or temporarily avoid) certain regulatory or trade requirements for specific products or future models. The host frames them as uncertain because the criteria aren’t clearly defined, leaving companies exposed to political changes.

The “2030 hardware deadline” is a future compliance or regulatory milestone that pressures automakers to change vehicle hardware by a certain date. The host uses it to explain why manufacturers are acting early—because meeting the deadline depends on sourcing and supplier compliance, not just internal engineering.

A compliance problem means a component, software, or process doesn’t meet required rules—often related to safety, trade restrictions, or government regulations. The host’s example is that a Bluetooth module, telematics controller, or Wi‑Fi chip could be buried in suppliers, making the issue hard to detect until later.

A telematics controller is the electronic unit that manages connected-car features like cellular connectivity, remote services, and data exchange between the vehicle and cloud systems. In this segment, it’s mentioned as an example of a software/firmware-containing component that could be subject to compliance issues.

A Wi‑Fi chip is the hardware component that enables wireless networking in the vehicle (for connectivity features and local device connections). The host uses it to illustrate how even small electronics can be sourced through multiple supplier layers and potentially trigger compliance concerns.

A “tariff mess” refers to confusion and disruption caused by tariffs—taxes on imported goods—that can change costs and sourcing decisions for automakers. In this segment, it’s tied to how manufacturers respond by emphasizing where parts are made and, increasingly, where software and electronics come from.

North American parts content is a measure of how much of a vehicle’s parts are sourced from North America, often used to qualify for trade benefits or satisfy regulatory requirements. The host notes automakers previously highlighted these percentages, but now they may need to prove similar compliance for software and electronics too.

EV tax credits are government incentives that reduce the amount of tax you owe when you buy an eligible electric vehicle. They can change consumer demand and automaker planning, and when they change or expire, sales and production strategies can shift quickly.

Connected cars are vehicles that use internet or cellular links to exchange data with services, apps, or other systems. Because they rely on software and data connections, changes in technology, regulations, or supply chains can affect features and updates.

Modern vehicles are tightly integrated systems where software controls functions and hardware provides the physical components. When either side is constrained—like needing different parts or code—automakers may delay models or remove features.

Heated seats are an in-cabin comfort feature that typically uses electrical heating elements and control modules. During supply shortages, automakers may temporarily remove or limit such features if they can’t source the needed components.

Blind spot monitoring is a driver-assistance system that warns you when a vehicle is in your blind spot. Because it depends on sensors, control electronics, and software, it can be affected by chip shortages or supplier changes.

Over-the-air (OTA) updates are software updates delivered to a car wirelessly, without needing a dealership visit. This matters because it ties vehicle functionality to software supply chains and cybersecurity/compliance requirements.