The Voice News:The U.S. government has issued a warning to Italian tire giant Pirelli that the sale of vehicles equipped with its data-collecting “Cyber Tyre” technology may face restrictions in the United States due to national security concerns related to Chinese ownership, according to a Bloomberg report.
The advisory comes amid heightened scrutiny from Washington over Chinese influence in the tech and automotive sectors. The U.S. Department of Commerce’s Bureau of Industry and Security issued the warning in an informal letter dated April 25, which reportedly responded to a request from Pirelli seeking clarity on its technology’s regulatory status.
Cyber Tyres and National Security Concerns
Pirelli’s Cyber Tyres represent cutting-edge innovation in the automotive industry. These intelligent tires can collect and transmit real-time data—such as tire pressure, temperature, and road conditions—directly to the vehicle. While the technology is being positioned as a safety-enhancing and performance-boosting feature, U.S. authorities have expressed concerns about the sensitive nature of data transmission, especially when controlled by companies with links to foreign governments.
Pirelli’s largest shareholder is China’s state-owned Sinochem, which holds a 37% stake. The U.S. has been tightening its policies to curb Chinese access to critical infrastructure and data streams. New regulations already ban Chinese-controlled software in connected vehicles starting with the 2027 model year, while hardware bans will take effect in 2029.
Regulatory Roadblocks Ahead
According to the Commerce Department’s advisory, automakers incorporating Pirelli’s Cyber Tyres into their vehicles may need to obtain a special export authorization to legally sell those vehicles in the United States. The move could significantly hinder Pirelli’s growth ambitions in the North American market, where it earns approximately 25% of its global revenue.
Pirelli declined to comment on the issue. The U.S. Commerce Department also did not respond immediately to media requests for clarification.
Governance Disputes Add Pressure
This warning comes at a time when Pirelli is already embroiled in a governance dispute with its Chinese stakeholder Sinochem. Pirelli and Camfin, its second-largest shareholder controlled by Italian businessman Marco Tronchetti Provera, have accused Sinochem of obstructing the company’s decision-making processes and limiting its ability to expand—particularly in the strategically important U.S. market.
Just last week, Pirelli CEO Andrea Casaluci told Corriere della Sera, an Italian newspaper, that the company was in a “risky situation” following Sinochem’s rejection of a governance reform proposal aimed at resolving internal conflicts.
Global Operations and U.S. Exposure
Although Pirelli operates primarily through manufacturing facilities in Mexico, South America, and Europe, it also maintains a smaller production plant in Georgia, USA. The company’s strong North American presence makes the U.S. market crucial to its long-term strategy, further amplifying the impact of potential restrictions.