Why Mercedes-Benz Could Get Banned From Selling Cars To Americans

Mercedes-Benz could face an unexpected challenge in the United States if a proposed bipartisan bill currently moving through Congress becomes law.

The legislation, known as the Motor Vehicle Modernization Act of 2026, is designed to prevent automakers with ties to foreign adversaries from manufacturing, importing, or selling vehicles in the U.S.

While the target is mainly Chinese automakers trying to enter the American market, some believe the bill's language could also affect Mercedes-Benz thanks to the automaker's ownership structure.

The German automaker's largest individual shareholder is BAIC, the Chinese state-owned Beijing Automotive Industrial Corporation, which holds a 9.98 percent stake in Mercedes-Benz Group AG. Another significant shareholder is Geely chairman Li Shufu, whose investment firm controls an additional 9.69 percent stake. Together, the two Chinese interests own nearly 20 percent of the company.

According to the proposed legislation, automakers with direct or indirect equity ownership by a government designated as a foreign adversary—including China, Russia, and North Korea—would be prohibited from selling, importing, or manufacturing vehicles in the United States for five years after the law takes effect.

While the bill includes exemptions for manufacturers with an established U.S. production presence, those exemptions may not apply to companies with qualifying foreign-government ownership interests.

Mercedes operates a major manufacturing facility in Tuscaloosa, Alabama, which has produced more than five million vehicles since opening in 1997. Mercedes also builds vans at a South Carolina plant and employs more than 10,000 people across its U.S. operations.

CNBC claims that, depending on how the bill is interpreted, Mercedes could be banned from operating in the U.S. market. An outcome like that would be an unintended consequence of legislation aimed at limiting Chinese automakers' expansion into North America.

In addition to the Motor Vehicle Modernization Act, Congress is also considering the Connected Vehicle Security Act of 2026, which targets connected vehicle technologies linked to China and could affect several automakers with Chinese ownership stakes.

Companies including Volvo, Lotus, Faraday Future, and Karma Automotive could also face questions about their eligibility to operate in the United States because of Chinese ownership ties.

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