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<\/p>\n\n Stock in Mercedes held by Chinese companies, including one owned by Chinese state, could fall foul of planned US rules <\/p>\n
https:\/\/www.carscoops.com\/author\/chris-chilton-cc\/
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by Chris Chilton<\/a><\/p>\n 5 hours ago<\/p>\n Proposed US legislation could block Mercedes sales despite American manufacturing footprint.<\/p>\n Chinese shareholders\u2019 combined stake exceeds ownership threshold lawmakers are targeting.<\/p>\n Mercedes outwardly unconcerned, says it expects a workable solution if concerns escalate.<\/p>\n Mercedes-Benz could find itself caught in the crossfire of Washington\u2019s push to keep Chinese<\/a> influence out of the American auto industry. A proposed bill moving through Congress is designed to target automakers linked to foreign adversaries, and Mercedes may end up as one of the most high-profile unintended targets.<\/p>\n The issue isn\u2019t where Mercedes builds cars. The company has been assembling vehicles in Alabama for decades and also operates a van plant in South Carolina. Instead, the concern centers on who owns chunks of the company.<\/p>\n Related: Trump Admin Tried To Get Mercedes To Move To America<\/a><\/p>\n One of Mercedes<\/a>\u2019 biggest shareholders is Chinese state-owned automaker BAIC, which holds just under 10 percent of the company. Another major shareholder is Geely chairman Li Shufu, whose stake is also just under 10 percent. Together, those holdings amount to roughly 19.7 percent of Mercedes\u2019 shares.<\/p>\n Five years ago, that wouldn\u2019t have been a problem. But the proposed Motor Vehicle Modernization Act includes language aimed at companies with ownership ties to governments considered foreign adversaries, CNBC<\/a> reports. And China<\/a> is among the countries covered by the legislation.<\/p>\n Depending on how lawmakers interpret the bill, Mercedes could potentially fall within its scope despite being a German brand with a substantial manufacturing presence in the United States. Benz employs around 10,000 people across the country and recently celebrated the production of its 5 millionth model in the US, and is shifting production of its GLC to America<\/a>.<\/p>\n Exemptions Don\u2019t Apply<\/p>\n
The legislation does include exemptions for automakers that have been producing vehicles in America for years. However, one section appears to remove that protection if a company has direct or indirect ownership linked to a foreign-adversary government. That\u2019s where BAIC\u2019<\/a>s involvement creates questions.<\/p>\n Mercedes isn\u2019t panicking, at least not publicly. CEO Ola K\u00e4llenius recently suggested the company could address ownership concerns if necessary and indicated he\u2019s confident any issues could be resolved without major drama. The automaker has also said it\u2019s working with policymakers to better understand the proposal and ensure its US operations aren\u2019t harmed.<\/p>\n The stakes are significant. Mercedes sold more than 300,000 passenger vehicles in the US<\/a> last year and has ambitions to push that figure much higher. A sales ban remains a long way from reality, and the bill could still change substantially before becoming law. But the whole saga is a reminder of how complicated and interconnected the modern auto industry is.<\/p>\n![\"](\"https:\/\/www.europesays.com\/germany\/wp-content\/uploads\/2026\/06\/Mercedes-lead-jun1261-1024x576.jpg\")
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