Key facts
- A US Senate bill would ban companies with over 15% Chinese ownership from selling vehicles in the United States.
- Mercedes-Benz has nearly 20% passive ownership from Chinese entities.
- Senator Bernie Moreno stated that the bill will not ban Mercedes-Benz vehicles in America.
- Senator Ted Cruz warned the bill needs changes to avoid banning Mercedes-Benz.
- The bill aims to prevent Chinese entities from accessing US roads and data.
- General Motors supported policies to protect American manufacturing and global competitiveness of US automakers.
A US Senate bill aimed at banning Chinese-owned vehicles from the American market will not prohibit German automaker Mercedes-Benz from selling its cars in the United States, according to Senator Bernie Moreno, a sponsor of the legislation. The bill, approved by the Senate Commerce Committee in July, seeks to bar companies with more than 15% ownership by Chinese entities from selling vehicles in the US, a threshold that Mercedes-Benz, with nearly 20% passive ownership from Chinese investors, could exceed.
Moreno stated that discussions are ongoing to ensure Mercedes-Benz is not banned, expressing concern about whether the company could reach the 15% ownership limit without significant impact. Senator Ted Cruz, who chairs the Commerce Committee, also warned that the bill, as it stands, could effectively ban Mercedes-Benz from the US market and indicated that changes are necessary. He suggested that General Motors might be pushing the measure to reduce competition for its Cadillac brand.
Co-sponsor Senator Elissa Slotkin argued that the legislation is crucial for national security, stating that Chinese cars are "surveillance packages on wheels" capable of collecting and transmitting data to Beijing. General Motors, however, contended that the legislation does not target individual automakers and supports policies that strengthen American manufacturing and global competitiveness. Mercedes-Benz emphasized its commitment to US operations and national security, while also seeking to ensure the legislation does not negatively impact its business.