US Senate bill targets Chinese-owned automakers, may hit Mercedes
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The US Senate Commerce Committee advanced legislation restricting automakers with Chinese ownership above 15%, potentially affecting Mercedes-Benz due to its nearly 20% Chinese stake. Senator Ted Cruz said the bill would not ban Mercedes, signaling likely changes before passage.
The Legislation
The Senate Commerce Committee advanced a bill that would restrict automakers with Chinese ownership exceeding 15% from the US market. Mercedes-Benz has two major Chinese investors — BAIC and Geely founder Li Shufu — whose combined holdings total nearly 20%, putting the German automaker in the crosshairs. The bill is part of broader efforts to reduce automotive dependence on China.
Lawmaker Pushback
Senator Ted Cruz reportedly said during committee discussions, "We would never consider" banning Mercedes-Benz, according to CNBC. Senator Bernie Moreno noted Mercedes would have until 2030 to address the ownership situation and could seek exemptions. The comments suggest the final bill may exclude Mercedes or include carve-outs.
Industry Impact
The Biden administration's connected-car rules already forced Polestar, majority-owned by China's Geely, out of the US this year. Chinese connectivity software is banned from 2027 model-year vehicles, and Chinese hardware from 2030 models. Suppliers are racing to replace Chinese-made components, with costs potentially rising 15%, according to industry executives.
What's Next
The bill must still pass the full Senate and House before reaching President Biden's desk. It remains unclear whether Mercedes will ultimately be exempted or forced to restructure its ownership.
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US Senate bill targets Chinese-owned automakers, may hit Mercedes
