U.S. Warns Pirelli on Possible Sale Restrictions Over Chinese
The U.S. government has reportedly issued a warning to Italian tire manufacturer Pirelli regarding potential restrictions on the sale of vehicles fitted with its advanced Cyber Tyre technology. The concern stems from the company’s close ties to Chinese state-owned investor Sinochem, which holds a 37% stake in Pirelli. Let’s have a look why U.S. Warns Pirelli of Potential Sale Restrictions Over Chinese Investor Ties.
What Is the Cyber Tyre?
Pirelli’s Cyber Tyre is a high-tech system that captures and transmits real-time tire performance data, including:
- Tire pressure
- Temperature
- Load and wear conditions
- Road surface feedback
This data is transmitted via sensors to onboard systems and potentially to cloud-based platforms. While the technology improves vehicle safety and performance, it also raises concerns over data privacy and national security.
Why the U.S. Is Concerned
U.S. officials are reportedly alarmed by the possibility that vehicle data collected by Cyber Tyres could be accessed by foreign entities—specifically Chinese government interests via Sinochem. These concerns are part of a broader American strategy to reduce dependency on Chinese technology and protect critical infrastructure from potential cyber threats.
Restrictions Under Consideration
According to Bloomberg and Reuters sources, the U.S. is weighing several responses, including:
- Restricting the sale of vehicles equipped with Pirelli Cyber Tyres in the U.S.
- Blocking federal vehicle contracts for automakers that use the system
- Potential exclusion of Chinese-owned components in critical automotive technologies
These measures would align with ongoing U.S. policies that include:
- A pending 2027 ban on Chinese software in vehicles
- A broader 2029 ban on Chinese hardware integration
Pirelli’s Response: Limiting Chinese Control
In an effort to reduce scrutiny and secure access to the U.S. market, Pirelli’s board recently voted to remove Sinochem’s status as a controlling shareholder. While Sinochem still holds a large equity share, this governance change is intended to reassure regulators that the company operates independently.
This move follows increasing pressure on companies across Europe and North America to minimize Chinese influence in critical industries such as automotive, energy, and telecommunications.
Geopolitical and Industry Impact
This situation highlights a growing challenge for multinational companies: navigating the complex and often conflicting demands of global shareholders, government regulators, and national security interests.
Key takeaways for the industry include:
- Increased scrutiny of Chinese investments in strategic tech sectors
- Rising importance of data privacy and localization in vehicle systems
- Ongoing shift in supply chains away from China-dependent technologies
What It Means for Consumers and Automakers
If restrictions are imposed, automakers using Pirelli’s Cyber Tyre system may need to:
- Switch to alternative tire technologies
- Retrofit or disable specific data features for the U.S. market
- Reevaluate supplier relationships to avoid compliance risks
Consumers may also see delays in the rollout of certain connected vehicle features, particularly in models marketed in North America.
Conclusion
U.S. Warns Pirelli underscores the growing intersection of automotive technology, data security, and geopolitics. As the car industry becomes more connected and data-driven, companies must balance innovation with regulatory compliance—especially when global ownership involves state-linked investors.
For now, Pirelli’s future in the U.S. market may depend on its ability to demonstrate clear operational independence and compliance with evolving security standards.
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