Mercedes‑Benz faces a new hurdle in the United States after the Senate Commerce Committee moved a bipartisan bill that could restrict its ownership structure.
Committee advances legislation that may affect German luxury automaker
The Motor Vehicle Modernization Act of 2026, now before the Senate Commerce Committee, proposes a 15 percent cap on Chinese ownership of companies that sell vehicles in the United States. The measure aims to keep Chinese‑linked vehicle technology out of the market for national‑security reasons, especially concerns about connected cars gathering sensitive data.
During the markup on Wednesday, committee chairman Ted Cruz, R‑Texas, warned that the bill’s language would inadvertently include the German brand. Two Chinese investors together own just under 20 percent of its shares, exceeding the proposed threshold.
He added that the legislation would need to be altered before it could become law, signaling that the committee is already reviewing the wording.
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The two largest shareholders are Chinese firms: BAIC, formerly Beijing Automotive Industrial Corp., holds 9.98 percent, while Geely founder Li Shufu owns 9.69 percent. Their combined stake puts the automaker above the 15 percent limit.
Potential impact on U.S. operations and timeline
The company employs more than 10,000 workers in the United States and runs assembly plants in Alabama and South Carolina. This week it unveiled the Mercedes‑Maybach GLS 680, built at the Tuscaloosa, Alabama facility.
According to the bill, it would have until 2030 to meet the ownership requirement or seek a waiver. Options include revising the threshold, securing a carve‑out, obtaining a waiver, or restructuring ownership before the deadline.
Senator Bernie Moreno, R‑Ohio, introduced the legislation with Senator Elissa Slotkin, D‑Michigan, framing it as an industrial‑base measure. The proposal still must pass additional committee steps and a full Senate vote before becoming law.
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A separate element of the markup dragged General Motors into the discussion. Cruz accused GM of supporting the ownership provision to weaken the luxury brand and boost Cadillac’s standing. Both GM and the automaker declined immediate comment.
The bill’s intent targets Chinese automakers, yet the ownership clause has drawn a major luxury maker into the conversation.
For observers, the situation illustrates how trade‑policy tools can ripple beyond their original focus. The automotive sector is already dealing with a tangled network of supply‑chain shifts and regulatory scrutiny, and a change in ownership limits could force manufacturers to reevaluate cross‑border investments.
If the provision remains unchanged, the company would need to adjust its shareholding structure or rely on a waiver process to stay on U.S. soil. Stakeholders will be watching the next legislative steps closely, as the outcome could set a precedent for how foreign‑investment thresholds are applied to other multinational firms.
