New Mercedes-Benz vehicles could be barred from the U.S. under a new bill aimed at preventing Chinese-linked automakers from entering the market.
The details: The proposed legislation, which has received bipartisan support, would prohibit automakers in which a 15% stake is “controlled by” what the bill defines as “foreign adversaries” from importing, selling, or manufacturing vehicles for sale in the U.S., CNBC reported.
Mercedes-Benz’s largest individual shareholder is state-owned Chinese automaker BAIC, formerly Beijing Automotive Industry Holding Co., which owns 9.98% of the company.
The German automaker’s second-largest individual shareholder is Chinese billionaire Li Shufu, founder and chairman of Geely.
Shufu owns 9.69% of Mercedes-Benz shares through his Tenaciou3 Prospect Investment firm.
Combined, BAIC and Shufu control 19.67% of Mercedes-Benz Group AG, the parent company of the automaker and its financial services operations.
Some familiar with legislation—the Motor Vehicle Modernization Act of 2026—said the legislation’s language could create challenges for Mercedes-Benz.
What they’re saying: “The language is unambiguous,” said a former automotive policy advisor and lobbyist who was consulted about the bill, per CNBC.
Why it matters: While the bill remains far from becoming law, it highlights how geopolitical and ownership concerns are increasingly intersecting with the automotive industry, with evolving regulations tied to Chinese ownership and investment potentially influencing vehicle availability, brand strategy and long-term product planning.
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Between the lines: The proposal is the latest sign of growing political and industry opposition to Chinese vehicles and technology entering the U.S. market, with some global automakers finding themselves caught in the middle.
Volvo Cars was recently exempted from a measure that could have restricted some of its vehicles in the U.S. due to its Chinese ownership ties and connected-car technology.
The Swedish automaker, which is majority owned by Geely Holding, received authorization from the U.S. government to continue selling vehicles in the market.
Bottom line: The bill underscores the growing scrutiny of Chinese involvement in the global auto industry, signaling that even established brands like Mercedes-Benz could face increased regulatory hurdles as ownership structures and geopolitical considerations play a larger role in future U.S. market access.
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