The Senate Commerce Committee's advancement of the Motor Vehicle Modernization Act of 2026 aims to impose stricter bans on Chinese automakers, citing national security concerns regarding vehicle technology and data collection.
Chairman Ted Cruz highlighted that the bill's 15% ownership threshold could inadvertently affect Mercedes-Benz, as it is partially owned by Chinese investors BAIC and Geely, who hold nearly 20% of its shares combined.
Cruz emphasized the need for amendments to prevent unintended consequences for Mercedes-Benz, which employs over 10,000 people in the U.S. and has significant manufacturing operations.
The bill, introduced by Senators Bernie Moreno and Elissa Slotkin, is designed to protect the U.S. industrial base, but it has drawn criticism, with Cruz accusing General Motors of supporting the legislation to weaken competition from Mercedes-Benz. GM, the leading automaker in the U.S., did not respond to requests for comment.
The legislation allows Mercedes-Benz until 2030 to comply with the ownership limit or seek a waiver, indicating a potential shift in the competitive landscape of the automotive market