Senate Bill Threatens Mercedes-Benz Group With U.S. Sales Ban

The United States Senate Committee on Commerce, Science, and Transportation approved a bipartisan bill that could ban Mercedes-Benz Group from selling vehicles in the U.S. if the company does not reduce Chinese ownership. The legislation prohibits the sale of vehicles from companies in which Chinese entities hold a stake of 15% or greater. Mercedes-Benz Group currently has a nearly 20% passive Chinese investment, primarily through shareholders BAIC Group and Li Shufu.

Sponsored by Senators Bernie Moreno and Elissa Slotkin, the bill aims to protect the American industrial base. Affected companies must comply by 2030 or seek a waiver. The move follows a Trump administration ban on Polestar, a subsidiary of Geely Holding, effective for the 2027 model year. Senator Ted Cruz, chair of the Commerce Committee, argued the bill requires changes and alleged that General Motors Company pushed the provision to benefit its Cadillac brand, a claim General Motors Company denied.

In response, Mercedes-Benz Group CEO Ola Kaellenius pledged to protect the company's U.S. business. The automaker has committed over $7 billion in U.S. investments, including $4 billion to increase SUV production at its Alabama plant by 2030. Kaellenius also indicated the company may establish engine production in the U.S., depending on North American trade pact negotiations, to leverage U.S. demand for combustion engines as sales decline in China.