Mercedes-Benz is lobbying for looser restrictions on a bipartisan Senate bill aimed at barring Chinese vehicles and car components from the U.S.
The details: The German automaker is asking lawmakers to raise the ownership cap in the Connected Vehicle Security Act of 2026, introduced in April by Sens. Elissa Slotkin and Bernie Moreno, according to Automotive World.
The bill currently sets a 15% cap on Chinese ownership for automakers selling connected vehicles, a threshold Mercedes exceeds because 20% of its ownership has Chinese ties.
That 20% stake is split between two shareholders: China's state-owned BAIC Motor and Geely Chairman Li Shufu.
Mercedes-Benz argues neither shareholder owns more than 10%, has board representation, or exerts meaningful influence over operational decisions.
The Senate Commerce Committee is scheduled to take up the bill later in July after delaying a July 15 hearing amid lobbying from established automakers, including Mercedes-Benz.
The House Select Committee on China has publicly opposed Mercedes' request to raise the cap, characterizing the automaker as a "German-based, Chinese-owned company" that should not be dictating U.S. legislative terms, according to Automotive World.
A House bill being proposed alongside the Senate measure includes a similar 15% ownership cap.
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Why it matters: The proposed legislation could have broad implications for global automakers with Chinese ownership ties, potentially affecting which vehicles and technologies are eligible for the U.S. market.
Between the lines: The dispute marks another major escalation in the mounting pressure across the industry to limit Chinese involvement in the U.S. auto market.
Volvo Cars was approved in May to continue importing vehicles with connected-car technology into the U.S., avoiding a key restriction aimed at blocking Chinese vehicles and components.
Polestar has been barred by the Department of Commerce from selling vehicles beyond the 2026 model year because of its majority ownership by China's Geely Holding.
Bottom line: Concerns over national security are increasingly shaping automotive policy, potentially influencing future vehicle availability, brand strategies and the competitive landscape.
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