Chinese ownership stake nears 20%, Mercedes-Benz lobbies U.S. to relax ban threshold; House committee criticizes

Mercedes-Benz is actively lobbying the U.S. Congress to soften a proposed bill that could ban its connected vehicles from the American market. The legislation, introduced by Senators Elissa Slotkin and Bernie Moreno, aims to prohibit automakers with more than 15% Chinese ownership from selling connected vehicles in the U.S. This threshold directly impacts Mercedes-Benz, as nearly 20% of its shares are held by Chinese entities, including state-owned BAIC Group and Geely founder Li Shufu. The German automaker is reportedly seeking to raise the permissible Chinese ownership threshold to 25% and is exploring other potential amendments. Lawmakers are also discussing a shift from a simple numerical limit to a qualitative assessment of national security risks, which could be more favorable to Mercedes-Benz. The company stated that no single shareholder holds over 10% of its stock and that no shareholder has direct board representation or control over its operational decisions. Mercedes-Benz emphasized its commitment to supporting U.S. national security legislation while ensuring it does not impede its operations. The U.S. House Select Committee on the Strategic Competition Between the U.S. and China has criticized Mercedes-Benz's lobbying efforts, urging Americans to pay close attention as the company attempts to influence U.S. legislation. Similar bills in the House also propose a 15% ownership cap, though restrictions for existing companies like Mercedes-Benz would take effect in 2030, granting them time to comply. The outcome of the legislation remains uncertain, with ongoing debates about potential 'grandfather clauses' for companies like Volvo, which also falls under the proposed threshold.

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When a company that is German-based and partly Chinese-owned tries to tell US lawmakers how to write rules for our country, all Americans should pay close attention.