Mercedes-Benz will not be forced out of the United States by a bipartisan bill aimed at permanently banning Chinese-linked vehicles, according to the senator leading the effort, even though close to a fifth of the German carmaker is owned by Chinese investors.
The legislation, which recently stalled in the Senate and is expected to be delayed until after the midterm elections, would bar companies with more than 15 per cent Chinese ownership from importing, manufacturing or selling vehicles in the United States. It builds on earlier measures introduced under the Biden administration that have already effectively shut Chinese-branded cars out of the American market.
Republican Senator Bernie Moreno, who is sponsoring the bill alongside Democratic Senator Elissa Slotkin, acknowledged that work remains to ensure the threshold does not inadvertently sweep up established European brands. «We're not going to have the president of the United States sign a bill — nor would he — that bans Mercedes-Benz from the United States of America,» he said. «We have to figure out a way to manage all of that.»
The concern was first raised by Republican Senator Rand Paul, who questioned whether the ownership test would effectively exclude Mercedes-Benz from selling cars in the US. The Stuttgart-based manufacturer is one of Germany's most recognisable industrial names, but its shareholder register carries substantial Chinese interests that few consumers are aware of.
The Beijing Automotive Group, known as BAIC Group, holds a 9.98 per cent stake in Mercedes-Benz. Eric Li Shufu, the founder and chairman of Chinese automaker Geely, owns a further 9.7 per cent. Together those holdings sit just below the 15 per cent ceiling written into the bill, leaving the company exposed to any tightening of the threshold or any change in the composition of its investor base.
Moreno said lawmakers would need to determine whether Mercedes-Benz could reduce its Chinese ownership below 15 per cent «without debilitating their company». He also indicated that the Senate would have to find a route for Volvo to continue selling cars locally, given that the Swedish brand is majority owned by Geely.
Mercedes-Benz is not the only established marque facing scrutiny under the proposed ownership test. Geely also holds a 17 per cent stake in Aston Martin, taking the British luxury carmaker beyond the 15 per cent limit and raising the prospect that it too would need an exemption or a restructuring of its shareholding to keep trading in the US.
The bill's progress has slowed in the Senate, and its consideration is now likely to slip past the midterm elections. That timetable gives manufacturers, dealers and investors a window to lobby for carve-outs, while leaving the long-term position of Chinese-backed European brands in the American market unresolved.
For Mercedes-Benz, the immediate threat appears to have receded. The company's exposure rests on a shareholder structure that has been in place for years, with BAIC and Li Shufu both long-standing investors. Neither has shown signs of reducing its holding, and the carmaker has given no indication that it intends to restructure its ownership to satisfy a US legislative threshold.
The wider question is how Washington intends to police Chinese influence in the automotive supply chain without penalising brands that American consumers regard as domestic fixtures. The bill's supporters argue that software and hardware linked to China pose a national security risk, while its critics warn that ownership tests drawn too broadly could disrupt a market worth hundreds of billions of dollars.
Moreno's comments suggest the Senate is prepared to write exemptions rather than lose the legislation altogether. But each carve-out invites demands from other affected companies, and the final shape of the bill remains uncertain. For now, Mercedes-Benz can continue to sell cars in the United States, while Aston Martin and Volvo await clarity on whether their Chinese links will be tolerated or tested.