Rev Up! Connected Vehicles: New National Security Law with Major Impact on Connected Vehicles and the Auto Supply Chain

The topic is connected vehicles and the automotive supply chain and specifically how a new law that became effective on March 17, 2025, has major implications for automakers, auto suppliers, and investors and dealmakers doing business in the Automotive/Mobility Industry.

The new law addresses national security concerns posed by certain transactions involving information and communications technology and services. The law is a regulation out of the U.S. Department of Commerce’s Bureau of Industry and Security that applies to connected vehicles and certain hardware and software utilized in connected vehicles.

The law seeks to regulate vehicle connectivity system hardware and covered software, or VCS, and automated driving systems software, or ADS, when there is a connection to certain foreign adversaries.

The new law has very broad coverage and likely will apply to every new passenger vehicle sold in the U.S. from the 2030 model year onward. The law is complex and nuanced, comes with penalties for lack of compliance, and will force the industry to add steps in its compliance regime, increasing both costs and the potential for delays.

Our guest today is Melissa Mannino, a partner at BakerHostetler and co-leader of BakerHostetler’s International Trade and National Security team.

Let’s get started with Rev Up! Where the Rubber meets the law.

Questions and comments: ahess@bakerlaw.com