In the US, the use of Pirelli's "smart" tires may be restricted

The US Department of Commerce has warned Pirelli that sales of vehicles equipped with the company's "smart" tires, which can collect and transmit data, may be restricted due to concerns about the influence of its Chinese investor, reports Bloomberg.

Pirelli's largest shareholder, with a 37% stake, is Chinese state-owned conglomerate Sinochem, and the company's product line includes so-called "cyber tires" (Cyber Tyre) that can collect data using sensors and transmit it in real-time.

Pirelli has been warned that automakers using Cyber Tyre technology in their vehicles will likely need to apply for a special license to sell them in the US.

The US is currently tightening control over the use of Chinese technology in connected vehicles, and bans on software and hardware are set to come into effect in 2027 and 2029, respectively.

Recently, Pirelli announced that Sinochem no longer controls the company, which should help the tire manufacturer as it expands its business in the US.

North America accounts for 25% of Pirelli's revenue, with products primarily shipped from plants in Mexico, South America, and Europe, although the company has its own small production facility in the US state of Georgia.

Previously, Pirelli CEO Andrea Casaluci stated that the company had "found itself in a risky situation" due to Sinochem's refusal to address management issues.