Mercedes-Benz could face US ban under Senate bill targeting Chinese-owned automakers

Key Points:

• The Senate Commerce Committee advanced bipartisan legislation that would ban the sale of connected vehicles in the U.S. from automakers with more than 15% Chinese ownership, potentially affecting Mercedes-Benz, which has nearly 20% Chinese investor stakes.
• Sponsors argue the bill aims to protect U.S. national security by preventing data collected on American roads from being transmitted to the Chinese government, describing Chinese-owned vehicles as surveillance risks.
• Senator Ted Cruz warned the bill could effectively block Mercedes-Benz from the U.S. market without changes, accusing General Motors of supporting the measure to disadvantage Mercedes and boost its Cadillac brand.
• Mercedes-Benz emphasized its significant U.S. operations and support for national security legislation but stressed the need to avoid impacts on its business, while GM stated the bill supports fair competition for U.S. automakers.
• The legislation includes a Commerce Department authorization process for exceptions, and some automakers like GM and Ford plan to shift Chinese-made vehicle production to the U.S. to comply with the rules.