Another day, another weird economic flex by the United States' Congressional delegates as, just like TikTok, the representatives are looking to go after certain foreign vehicle manufacturers. Including powersport OEMs.
The U.S. Commerce Department recently proposed rules that would ban vehicles with software and hardware links to China and Russia by model year 2027. Officials with the Commerce Department's Bureau of Industry and Security (BIS) announced the new rules last week, which specifically target vehicles with "connected vehicles". And in the world of motorcycles, CFMoto is at the top of the list.
BIS proposes to define a "connected vehicle" as meaning, "a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, that integrates onboard networked hardware with automotive software systems to communicate via dedicated short-range communication, cellular telecommunications connectivity, satellite communication, or other wireless spectrum connectivity with any other network or device."
CFMoto's telematics-box (T-Box) and the CFMoto Ride app would constitute onboard networked hardware with automotive software systems to communicate, meaning if the proposed rules pass, CFMoto models that run this type of hardware and software would be banned by 2027.
An advance notice of proposed rulemaking (ANPRM) was issued by the U.S. Department of Commerce in February, which included a quote from the U.S. Secretary of Commerce, Gina Raimondo, stating, “It doesn’t take a lot of imagination to think of how foreign government with access to connected vehicles could pose a serious risk to both our national security and the personal privacy of U.S. citizens.”
These proposed rules come in the wake of CFMoto making significant inroads into the U.S. market after becoming embedded in the Latin American market. But, another brand making waves in the U.S. market might also come under fire due to the proposed new rules.
Most Kove motorcycles are fitted with GPS, connect to your phone via Bluetooth, and have a dedicated app, which would theoretically also count those models out of the U.S. by 2027. Much like CFMoto, Kove is catching the interest of riders in the U.S. due to its seemingly high-quality models that are much cheaper than comparable motorcycles sold in the States.
This is a theme worth taking note of.
Motorcycles will make up a tiny portion of the vehicles these new rules would ban. The majority of the vehicles affected would be EVs coming from China, which seem to be more advanced than much of the competition stateside—BYD is a prime example.
EVs made in China are already subject to 100% tariffs, as announced by officials earlier this year but the latest proposed rules under the Biden Administration would be a much harsher repression. DJI is another company that's under threat of a potential ban in the U.S.
The question is, are CFMoto and Kove getting caught up in a trade war, or do the brands pose significant threats to U.S. national security? Have it out in the comments.
