The U.S. Department of Commerce on Monday unveiled a sweeping proposed rule that would prohibit the sale or import of connected vehicles integrating communication software and hardware developed or supplied by entities with ties to China or Russia. The decisive regulatory action aims to protect national transportation infrastructure from potential foreign cyber intrusions.
Commerce Secretary Gina Raimondo announced the notice of proposed rulemaking through the Bureau of Industry and Security (BIS), stressing that modern connected automobiles collect enormous volumes of sensitive personal data, including geographical positioning, interior audio, and biometric information from drivers and passengers.
National Security Concerns Over Data Surveillance and Remote Control
Officials warned that embedded foreign software could be manipulated remotely in extreme geopolitical crises, creating vulnerabilities where an adversary could theoretically cut power or override steering controls simultaneously across thousands of vehicles on American highways.
The proposed regulations specifically target Vehicle Connectivity Systems (VCS)—the microprocessors and software controlling Bluetooth, Wi-Fi, satellite, and cellular telematics—as well as Automated Driving Systems (ADS) enabling autonomous and semi-autonomous driving features.
“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet. It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to our national security.”
Implementation Timeline and Broad Automotive Industry Impact
Under the proposed framework, prohibitions on vehicle software would take effect beginning with Model Year 2027, providing automakers approximately two years to restructure their software supply chains. Hardware prohibitions would become binding for Model Year 2030 or units without a model year starting on January 1, 2029.
Global automotive manufacturers operating in North America will now have 30 days to review the proposed regulation and submit public comments before the Department of Commerce publishes its final binding rule later this year.
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