Government Says GM Is Gunning To Get Mercedes Banned From America

Earlier today, we brought you news that lawmakers approved the Connected Vehicle Security Act, a sweeping bill designed to ban cars linked to foreign adversaries on national security grounds. The bill contains a specific equity clause that would instantly ban Mercedes-Benz from American showrooms.

The ownership clause dictates that any automaker with more than 15 percent total ownership held by Chinese entities faces a complete sales ban. Mercedes-Benz currently operates with roughly 20 percent passive Chinese investment equity, split between state-owned BAIC Group and Geely founder Li Shufu. As currently drafted, the premium German brand would be categorized alongside Chinese state firms and barred from the U.S.

Senate Commerce Committee Chairman Ted Cruz alleged that General Motors is pushing hard for the equity requirements to get Mercedes out of the market in an effort to make Cadillac more competitive in the luxury vehicle space.

During the committee hearing, Senator Cruz pointed a finger straight at Detroit. Cruz went on record saying GM has been aggressively lobbying for the 15 percent ownership cap specifically to force Mercedes-Benz out of the United States.

According to Reuters, Cruz added that while national security concerns are legit, "we would never consider" banning Mercedes-Benz sales outright, indicating the Germans would have until the end of the decade to adjust their equity structure and could apply for waiver exemptions.

General Motors did not directly deny the allegations. In a statement, the automaker said “the legislation isn’t about any individual automaker. GM supports policies that protect and strengthen American manufacturing and the global competitiveness of U.S. automakers.”

The ownership cap isn't the only provision GM is accused of orchestrating to strain rivals. Another clause in the bill would introduce strict domestic battery supply mandates, which, according to Cruz, would force automakers to buy batteries from GM. This could inject up to $5,000 in extra manufacturing costs per vehicle.

Rivian pushed hard for an amendment to revise the battery management software requirements, but the effort ultimately failed.

It's no surprise GM is going on the offensive—the American automaker is already fairly well insulated from the upcoming regulations. GM has spent the last year aggressively unraveling its overseas manufacturing ties, including permanently ending Chinese assembly of the Buick Envision at the conclusion of the 2026 model year.