A Mercedes-Benz logo is displayed on a used vehicle for sale at a dealership on November 11, 2025 in San Diego, CA.<\/p>\n
Kevin Carter | Getty Images News | Getty Images<\/p>\n
The Senate Commerce Committee advanced bipartisan legislation<\/a> Wednesday aimed at toughing a ban on Chinese automakers<\/a> from the U.S. market, even as Chairman Ted Cruz<\/a>, R-Texas, warned that it could unintentionally bar Mercedes-Benz<\/a> from selling vehicles in the country.<\/p>\n Cruz said during the committee’s markup of the Motor Vehicle Modernization Act of 2026<\/a> that the bill’s 15% Chinese ownership threshold would cover Mercedes-Benz because two Chinese investors collectively own nearly 20% of its shares.<\/p>\n “We would never consider” banning Mercedes-Benz, Cruz said, adding that the bill would need to be changed before becoming law.<\/p>\n Mercedes-Benz’s two largest individual shareholders<\/a> are Chinese state-owned automaker BAIC, formerly the Beijing Automotive Industrial Corp., with a 9.98% stake, and Geely founder Li Shufu, with 9.69%.<\/p>\n The bill would codify federal restrictions intended to keep Chinese-linked vehicle technology out of the U.S. over national security concerns that connected cars could collect sensitive data. <\/p>\n “We’re preventing an absolute, total, and complete destruction of our industrial base,” said Sen. Bernie Moreno<\/a>, R-Ohio, who introduced the bill with Sen. Elissa Slotkin<\/a>, D-Mich. <\/p>\n Mercedes-Benz previously declined to comment on the legislation but said it employs more than 10,000 people in the U.S.<\/a> and operates assembly plants in Alabama and South Carolina.<\/p>\n Moreno said during the markup that Mercedes-Benz would have until 2030 to comply with the ownership limit and could seek a waiver.<\/p>\n During the markup, Cruz also accused General Motors<\/a> of supporting the provision in an effort to weaken Mercedes-Benz and make Cadillac more competitive.<\/p>\n “GM is pushing for this provision to get Mercedes-Benz out of the market,” Cruz said.<\/p>\n