Controversial U.S. bill on Chinese stakes could affect Mercedes

A contentious U.S. Senate bill that could lead to a sales ban for Mercedes-Benz vehicles in the United States has cleared a significant hurdle. The relevant Senate committee has approved the draft legislation, allowing it to proceed for a full vote by the chamber.

The proposed law targets connected vehicles manufactured by companies where Chinese ownership exceeds 15 percent. This threshold could directly impact Mercedes-Benz, as Chinese automotive firm BAIC holds nearly 10 percent of its shares, and Geely founder Li Shufu owns another nearly 10 percent. The bill prohibits the import, production, sale, and resale of such vehicles.

Mercedes-Benz has responded by emphasizing that no single shareholder owns more than 10 percent of the company and that major shareholders do not directly participate in the supervisory board or influence business decisions. The automaker also highlighted its contribution to approximately 160,000 U.S. jobs through its plants in Alabama and South Carolina.

Disagreements among senators were evident during the committee debate. Influential Republican Ted Cruz advocated for removing the 15 percent threshold and questioned if it was designed to disadvantage German automakers. Both Cruz and Democrat Bernie Moreno, a proponent of the bill, stated their intention is not to ban Mercedes sales, noting that the legislation includes provisions for manufacturers to seek exemptions from the Department of Commerce.