Mercedes Should Avoid Vehicle Ban Despite Major Chinese Ownership

U.S. lawmakers are actively negotiating exemptions to a proposed Chinese vehicle ban to prevent major European automakers like Mercedes-Benz, Volvo, and Aston Martin from being barred from the American market, according to a report from Reuters.

The bill, which gained approval from the Senate Commerce Committee in July, seeks to prohibit any automaker with more than 15% Chinese ownership from selling passenger vehicles in the U.S. However, strict enforcement of that threshold would hit legacy brands that have substantial investment from Chinese firms.

Mercedes-Benz currently has nearly 20% passive ownership split between Chinese entities, while Geely Holding maintains controlling or significant stakes in Volvo, Lotus, and Aston Martin.

Republican Senator Bernie Moreno, one of the bill's chief sponsors, clarified that lawmakers are working to adjust the language before bringing it to a full vote. Moreno said that the goal is not to stop Mercedes-Benz from selling cars in America, but rather to find a workable solution while considering whether companies can realistically reduce Chinese equity below 15% without damaging their operations.

Opposition from Senator Rand Paul has held up fast-track approval for the legislation. Paul told the outlet he views the current wording as an unfair attack on specific companies like Mercedes-Benz, stating that he would allow the bill to move forward if those broad ownership restrictions are modified. Meanwhile, co-sponsor Democratic Senator Elissa Slotkin pointed out that the bill holds overwhelming bipartisan backing, with a companion bill in the House securing over 100 co-sponsors as legislative aides push for full passage this year.

Early last year, federal regulations effectively banned Chinese automakers from the U.S. market over data privacy and national security concerns, backed by tariffs exceeding 100% on Chinese-built electric vehicles. While domestic auto trade groups continue urging Washington to keep doors firmly shut to direct Chinese manufacturing, lawmakers are taking care not to let European legacy brands get caught in the crossfire.

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