Mercedes-Benz may be shut out of U.S. market under bill aimed at Chinese automaker ownership
The bill would bar automakers with Chinese government ties from U.S. sales, and Mercedes-Benz could be affected because BAIC owns 9.98%.
- Mercedes-Benz faces potential exclusion from the U.S. market under the Motor Vehicle Modernization Act, which bars automakers with over 15% foreign-adversary government equity from selling or importing vehicles.
- State-Owned BAIC holds 9.98% and billionaire Li Shufu holds 9.69% of Mercedes-Benz, a combined 19.67% stake that exceeds the bill's 15% threshold for foreign-adversary control.
- The company operates two large U.S. assembly plants and employs more than 11,000 people; its Tuscaloosa, Alabama, facility has produced more than 4.5 million vehicles since 1997.
- Industry groups are scrutinizing the legislation; The Alliance for Automotive Innovation CEO John Bozzella wrote last week that the bill makes "substantial progress" but emphasized "details matter."
- The Connected Vehicle Security Act and related restrictions on Chinese-linked software and hardware starting in 2027 signal a broader regulatory push to limit foreign-adversary influence in the U.S. auto sector.
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Mercedes-Benz may be banned from the American automotive market and could even face a production ban in the US. According to business media outlet CNBC, this is stated in a bill from the US Congress. The company allegedly failed to lobby effectively. Several other American media outlets confirm the threat.
Mercedes-Benz Risks US Ban Under Bill Restricting Chinese Cars
US lawmakers are weighing legislation that would ban carmakers with ties to foreign adversaries, a measure that threatens to upend Mercedes-Benz Group AG’s business in the world’s second-largest auto market because it’s partly owned by China.
The US wants to limit Chinese influence in the car industry. However, the planned law could also affect the German automaker Mercedes.
US bill targeting Chinese-made cars could also impact Mercedes-Benz market in America
Bill would ban automakers tied to U.S.-designated adversaries, including China, Russia and North Korea, from making, selling or importing vehicles into the U.S. for five years
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