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Senate passes China auto bill that could bar Mercedes-Benz from U.S.
CNBC • • business
Key Points:
- The Senate Commerce Committee advanced bipartisan legislation, the Motor Vehicle Modernization Act of 2026, aimed at banning Chinese automakers from the U.S. market based on a 15% Chinese ownership threshold.
- Chairman Ted Cruz warned the bill could unintentionally bar Mercedes-Benz from selling vehicles in the U.S. because two Chinese investors collectively own nearly 20% of its shares.
- The bill seeks to protect national security by preventing Chinese-linked vehicle technology from entering the U.S., citing concerns over connected cars collecting sensitive data.
- Mercedes-Benz, which employs over 10,000 people in the U.S. and operates assembly plants in Alabama and South Carolina, would have until 2030 to comply with the ownership limit and could apply for a waiver.
- Cruz accused General Motors of supporting the bill to weaken Mercedes-Benz and boost Cadillac's competitiveness in the U.S. market.
