Ford Seeks Waiver to Keep Selling China-Made Lincoln Nautilus in U.S.

Ford Motor Company has submitted an application to the U.S. Department of Commerce seeking a waiver to continue importing and selling in the U.S. market the Lincoln Nautilus SUV, which is assembled in China. The vehicle was already on sale in the United States before new regulations banning connected vehicles equipped with Chinese-developed software took effect, making it one of the few China-assembled models currently sold as imports in the U.S. Ford stated that the Nautilus’s onboard software was developed in the United States, while final assembly takes place in China. Under U.S. regulations, starting with model year 2027, vehicles will be prohibited from using onboard software developed or maintained by Chinese entities, and products from companies with significant Chinese ownership will also face restrictions. Hardware-related restrictions will take effect beginning with model year 2030. Ford expects to begin importing the 2027 Nautilus in January next year, leaving several months to complete the approval process. Multiple automakers, including Ford, are navigating a complex and opaque waiver application process. Volvo Cars received its waiver in May 2024 but emphasized that all its U.S.-sold models must still fully comply with regulatory requirements and, due to its Chinese ownership structure, must apply separately for compliance authorization. Other companies with Chinese investment ties, such as Polestar, may also need to seek similar waivers. In late 2024, the Motor & Equipment Manufacturers Association (MEMA) submitted a comment letter to the U.S. Department of Commerce’s Bureau of Industry and Security, noting that global automotive suppliers commonly develop hardware and software through multinational engineering teams, making it difficult to entirely disentangle Chinese involvement in development. The letter also highlighted uncertainty over whether the regulations can be precisely applied to specific lines of code. Rhodium Group, a U.S.-based think tank, noted that once hardware-related restrictions are implemented, automakers will face significantly higher adaptation costs and longer supply chain adjustment periods.