US automakers Ford, GM, Toyota and Volkswagen urged Congress to ban Chinese‑made connected vehicles, citing telematics and OTA updates as a security threat.

U.S. automakers urged Congress Thursday to enact a permanent ban on Chinese‑made connected vehicles, arguing the technology poses a security threat to American drivers.

Industry coalition files formal request

The Alliance of American Automakers, representing Ford, General Motors, Toyota, Volkswagen and several domestic suppliers, submitted a letter to the House Committee on Energy and Commerce. The letter said Chinese‑origin telematics, infotainment and over‑the‑air update systems could be exploited for espionage or sabotage.

Key arguments cited

Committee staffers were told that Chinese firms have "unrestricted access" to vehicle data streams, including location, driver behavior and battery performance. The coalition warned that such access could enable real‑time tracking of military convoys or critical infrastructure personnel.

"We cannot allow foreign actors to embed backdoors in the cars that millions of Americans drive daily," said a spokesperson for the alliance. "A permanent ban safeguards our supply chain and protects consumer privacy."

Legislative history

Congress previously imposed a 25% tariff on Chinese‑origin auto parts in 2024, but no comprehensive prohibition exists. Lawmakers in the Senate have introduced the Secure Vehicle Act, which would prohibit the sale of any new vehicle that incorporates Chinese‑sourced connectivity hardware.

Automakers' market impact

• Ford expects a 3% increase in profit margins if the ban removes competitive pressure from Chinese‑priced models.
• General Motors projects a $1.2 billion cost avoidance by eliminating the need to redesign software architectures.
• Toyota plans to accelerate its in‑house battery‑management system rollout to replace outsourced Chinese components.

Opposition and next steps

Chinese manufacturers and some bipartisan lawmakers argue the measure could raise vehicle prices and trigger trade retaliation. The Commerce Department is expected to release an impact assessment within 30 days.

The alliance said it will meet with committee chairs next week to discuss implementation timelines and potential exemptions for legacy vehicles already on the road.

Congressional action on the ban could begin as early as the coming month, with a vote likely before the end of the calendar year.