Mercedes-Benz faces possible US sales ban over Chinese ownership

The U.S. Senate Commerce Committee voted to advance the Connected Vehicle Security Act, a bipartisan bill that would prohibit the sale, import, production and resale of connected vehicles from automakers in which Chinese entities hold more than 15 % of the equity. Mercedes‑Benz, whose shareholding includes about 9.98 % held by state‑owned BAIC and 9.69 % owned by Geely founder Li Shufu, exceeds the threshold with roughly 20 % Chinese‑linked ownership.

If enacted in its current form, the legislation would require Mercedes to either restructure its shareholding or obtain a waiver before 2030, or risk being barred from the U.S. market. Senators Bernie Moreno (R‑OH) and Elissa Slotkin (D‑MI) sponsor the bill; committee chair Ted Cruz (R‑TX) said the bill needs changes and denied any intention to ban Mercedes outright, while accusing General Motors of pushing the provision to benefit Cadillac. Mercedes‑Benz stressed it employs about 160,000 workers in the United States, operates factories in Alabama and South Carolina, and supports a network of 386 dealers in 49 states. The proposal still requires full Senate approval and may be amended to raise the ownership threshold or provide exemptions for long‑standing manufacturers.