Senator Says Mercedes Won't Be Banned Under Proposed Chinese Ownership Bill
Senator Bernie Moreno confirms Mercedes is exempt despite 20% Chinese ownership, while other brands face potential restructuring.
A proposed U.S. Senate bill aiming to ban automakers with 15% or more Chinese ownership may not apply to Mercedes-Benz, according to Senator Bernie Moreno. The legislation, which has bipartisan support, seeks to tighten existing restrictions on Chinese influence in the American vehicle market, but Moreno stated that banning Mercedes vehicles is not the intent.
What Happened
Republican Senator Bernie Moreno (R-MI) told Reuters that the upcoming bill will not ban Mercedes-Benz vehicles in America, despite Chinese investors controlling approximately 20% of the company's shares. The ownership is split between Tenaciou3 Prospect Investment Limited (9.69%) and BAIC Group (9.98%), both of which hold passive stakes with no involvement in daily operations, product planning, or development. Moreno noted that while there is concern about whether these entities can reduce their holdings below the 15% threshold without harming the company, the current structure allows Mercedes to remain compliant.
Why It Matters
The bill represents a stricter approach than the Connected Vehicle Rule introduced in 2025, which already banned Chinese vehicles from the U.S. market and required brands like Volvo to prove they do not use Chinese-made software. Senator Elissa Slotkin (D-MI) reported that 99 senators support the measure, with Senator Rand Paul (R-KY) as the sole opponent due to concerns it puts Mercedes in jeopardy. Beyond Mercedes, Geely-owned Aston Martin (17% Chinese ownership) and Lotus would also face restrictions. While Lotus has minimal U.S. sales volume, Aston Martin and Mercedes would likely need to restructure their ownership models to continue selling in the United States, a critical market for both brands.
The Bottom Line
If passed, the bill will force automakers with significant Chinese ownership to restructure or exit the U.S. market. Mercedes appears secure due to the passive nature of its Chinese investments, but brands like Aston Martin and Lotus face uncertain futures unless they adjust their ownership thresholds.
