Mercedes-Benz Risks 5-Year U.S. Ban Under Bill Targeting BAIC's 9.98% Stake
Updated
Updated · CNBC · May 29
Mercedes-Benz Risks 5-Year U.S. Ban Under Bill Targeting BAIC's 9.98% Stake
2 articles · Updated · CNBC · May 29
Mercedes-Benz could be barred from importing, selling or making new vehicles in the U.S. for five years under a House bill that sweeps in automakers with any direct or indirect equity interest from a foreign-adversary government.
BAIC's 9.98% holding is the immediate trigger: several people familiar with the legislation said the current wording could ban Mercedes, while one former automotive policy adviser called the language "unambiguous."
A separate 15% control test could add pressure because BAIC and Geely founder Li Shufu together own 19.67% of Mercedes-Benz, though exemptions and interpretation remain unclear.
The stakes are high in the U.S., where Mercedes says it employs more than 11,000 people, runs two assembly plants including Tuscaloosa, and sold 303,200 passenger cars plus 12,400 vans last year.
The proposal reflects a broader bipartisan push to curb Chinese influence in autos, alongside connected-vehicle restrictions starting with 2027 software rules and 2030 hardware rules.
Will new U.S. laws force Mercedes to choose between its Chinese investors and the American market?
As Canada welcomes Chinese EVs, could diverging security policies fracture the North American auto market?
Beyond ownership, what technical safeguards can prove a connected car is secure from foreign influence?
Looming Five-Year U.S. Ban on Mercedes-Benz: National Security, Chinese Stake, and Market Disruption
Overview
The Motor Vehicle Modernization Act of 2026 introduces immediate uncertainty for Mercedes-Benz in the U.S., as its ambiguous language could result in a ban on the automaker’s operations. This threat is rooted in the Act’s current wording, which some experts and sources interpret as directly targeting Mercedes-Benz, highlighting a serious challenge for the company’s future in the American market. The situation underscores how legislative changes, driven by national security and economic concerns, can quickly escalate into significant risks for global companies with complex ownership structures and international partnerships.