Mercedes-Benz May Be Shut Out of U.S. Market Under Bill Aimed at Chinese Automaker Ownership
Mercedes-Benz's largest individual shareholder is BAIC, a Chinese state-owned automaker. Sources told CNBC that exemptions in the legislation would not apply.
TL;DR
- A new bipartisan bill, the Motor Vehicle Modernization Act of 2026, could ban Mercedes-Benz from the U.S. auto market.
- The bill targets automakers with direct or indirect equity interests from foreign adversary governments, including China.
- Mercedes-Benz's largest shareholder is BAIC, a Chinese state-owned automaker, with a 9.98% stake.
- Sources familiar with the legislation believe the bill, as written, would ban Mercedes-Benz operations in the U.S.
- Exemptions in the bill for companies manufacturing in the U.S. for at least five years do not apply to companies with foreign adversary government equity interests.
- Combined Chinese ownership through BAIC and Li Shufu's firm amounts to 19.67% of Mercedes-Benz Group AG.
- Other automakers with Chinese ownership, like Volvo, may also be impacted by similar ownership stipulations in related legislation.
- Mercedes-Benz has significant U.S. operations, including two assembly plants and over 10,000 employees.