Senate passes China auto bill that could bar Mercedes-Benz from U.S.

Senate Commerce Committee advanced bipartisan legislation On Wednesday, Chairman Ted Cruz, R-Texas, aimed to toughen his ban on Chinese automakers in the U.S. market, even though he warned it could inadvertently impose a ban. Mercedes-Benz from selling vehicles in the country.

Cruz said during the committee’s markup: Motor Vehicle Modernization Act of 2026 It is stated that the bill’s 15 percent Chinese ownership threshold will include Mercedes-Benz because the two Chinese investors collectively own approximately 20 percent of Mercedes-Benz.

“We would never consider” banning Mercedes-Benz, Cruz said, adding that the bill should be amended before it becomes law.

Mercedes-Benz’s two largest individual shareholders They include Chinese state-owned automaker BAIC (formerly Beijing Automotive Industrial Corp.), with a 9.98% stake, and Geely founder Li Shufu, with a 9.69% stake.

The bill would codify federal restrictions aimed at keeping Chinese connected vehicle technology out of the United States due to national security concerns that connected vehicles could collect sensitive data.

“We are preventing the absolute, wholesale and total destruction of our industrial base,” said Sen. Bernie Moreno, R-Ohio, who introduced the bill with Sen. Elissa Slotkin, D-Mich.

Mercedes-Benz has previously declined to comment on the legislation but said it employs more than 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina.

At the time of marking, Moreno said Mercedes-Benz would have until 2030 to comply with the ownership limit and could seek a waiver.

During the marking, Cruz also General Engines Supporting the provision in an attempt to weaken Mercedes-Benz and make Cadillac more competitive.

“GM is pushing for this provision to force Mercedes-Benz out of the market,” Cruz said.

GM and Mercedes-Benz did not immediately respond to requests for comment. GM is the best-selling automaker in the United States