Mercedes Faces Potential US Ban Over Chinese Ownership Links

A new proposal in the US Senate designed to prevent automakers with Chinese connections from operating in the American market could inadvertently impact Mercedes-Benz. The Senate Commerce Committee passed legislation that would restrict manufacturers with Chinese ownership above a certain threshold, and Mercedes has two major Chinese investors whose combined stake totals nearly 20 percent.

However, key lawmakers have moved to reassure the German carmaker. Senator Ted Cruz acknowledged the issue during committee discussions, stating that a ban on Mercedes-Benz was never under consideration. Senator Bernie Moreno indicated that Mercedes would have until 2030 to resolve the ownership structure and could potentially apply for an exemption.

The development underscores how aggressively the United States is seeking to reduce its automotive sector’s reliance on China. Rules targeting Chinese software introduced under the Biden administration have already forced Polestar, majority-owned by China’s Geely, out of the US market. The connected vehicle regulations will ban Chinese connectivity software from model year 2027 and Chinese hardware from model year 2030, citing national security concerns over vehicle data and communication systems. Industry executives warn that switching away from Chinese hardware could increase production costs by up to 15 percent.