Mercedes wants higher threshold in US China ownership bill

Mercedes-Benz is engaging in lobbying efforts aimed at altering a proposed US Senate bill that would prevent automakers with substantial Chinese ownership from doing business in the country, Bloomberg reported.

The bipartisan legislation, put forward in April by Senators Elissa Slotkin of Michigan and Bernie Moreno of Ohio, seeks to block the sale of connected vehicles by manufacturers whose ownership by Chinese entities exceeds 15%.

This threshold would apply to Mercedes, given that the company is close to 20% Chinese-owned.

Mercedes wants this cap raised to 25%, matching the level already proposed for other companies affected by the legislation, including suppliers of connected components and software.

Sources also indicate lawmakers are weighing whether to drop the fixed ownership percentage altogether in favour of a qualitative assessment focused on national security concerns – a shift that would likely work in Mercedes' favour compared with the bill's existing wording.

China's state-owned BAIC Motor holds close to 10% of Mercedes' shares, while a similar stake is held by Li Shu Fu, the founder and chairman of Geely.

Together, these holdings surpass the bill's proposed 15% limit.

Sources indicate the bill remains under active discussion and, despite gathering momentum, its passage into law is not guaranteed.

While Mercedes declined to comment directly on the proposed law, it told Bloomberg: “Mercedes-Benz continues to support legislation designed to protect US national security. Mercedes-Benz also remains committed to ensuring that any legislation does not impact our operations.”

The company further noted that no individual shareholder controls more than 10% of its stock, and that none holds a board seat or influence over how the business is run.

On 16 July, the Republican-led House Select Committee on China targeted Mercedes in an X post, claiming the automaker is lobbying the Senate against the legislation.

"All Americans should be watching as this German-based, Chinese-owned company tries to tell US lawmakers how to set the rules for our own country”," the panel stated.

The Senate Committee on Commerce, Science, and Transportation is due to take up the bill this week, following a delay to an earlier scheduled hearing.

A comparable version of the bill is also making its way through the House, likewise proposing a 15% ownership limit.

Under the Senate's proposed terms, automakers not yet operating in the US would be barred immediately, whereas those already established – such as Mercedes – would be given until 2030 to bring their ownership structures into line.

Volvo Car, which would also exceed the ownership threshold, is expected to be shielded through a grandfathering clause linked to an existing arrangement with the US government.

Lawmakers are said to be considering a further safe harbour clause that would let companies self-disclose unintentional breaches of the ownership rules.

Mercedes has manufactured vehicles in the US for decades, with an Alabama plant operating since the 1990s and a second facility in South Carolina.

Last month, Geely-owned Polestar said it would stop US vehicle sales from 2027. The decision to exit the US market came after a federal regulator rejected its application under the Connected Vehicle Rule.

"Mercedes wants higher threshold in US China ownership bill" was originally created and published by Just Auto, a GlobalData owned brand.

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