Mercedes-Benz may be shut out of U.S. market under bill aimed at Chinese automaker ownership

[mahatmakanejeeves]

Autos
Mercedes-Benz may be shut out of U.S. market under bill aimed at Chinese automaker ownership

Published Fri, May 29 2026 1:35 PM EDT
Updated Fri, May 29 2026 3:31 PM EDT
Michael Wayland
@MikeWayland
Luke Fountain
@Luke_Fountain25

KEY POINTS
• A House bill aimed at blocking Chinese-linked automakers could result in a U.S. ban of new Mercedes-Benz vehicles.
• Mercedes-Benz's largest individual shareholder is BAIC, a Chinese state-owned automaker.
• Sources told CNBC that exemptions outlined in the legislation would not apply to Mercedes-Benz, which has a large manufacturing presence in the country.
• Lawmakers in both parties are seeking to prevent Chinese automakers from gaining a foothold in the U.S. market.


Mercedes-Benz vehicles sit parked, on the day U.S. President Donald Trump is set to announce new tariffs, at a dealership in Copiague, New York, U.S., April 2, 2025.
Shannon Stapleton | Reuters

Mercedes-Benz could find itself shut out of the U.S. auto market — banned from making or selling new vehicles in the country — under legislation making its way through Congress. ... New bipartisan legislation aimed at limiting Chinese involvement in the U.S. auto market may sweep in Mercedes-Benz unless the bill is changed or the German automaker's largest shareholder sells its stake.

The bill, the Motor Vehicle Modernization Act of 2026, would prohibit automakers that have "any direct or indirect equity interest by a foreign-adversary government," such as China, from importing, selling or manufacturing vehicles for sale in the U.S.

Mercedes-Benz's largest individual shareholder is the state-owned Chinese automaker BAIC, formerly the Beijing Automotive Industrial Corp., with a 9.98% share. The potential implications of the legislation on the automaker are previously unreported. ... Several people familiar with the legislation who spoke to CNBC cited gray areas in the bill that, depending on how they're interpreted, could ban Mercedes-Benz from operating in the U.S.

Two sources who agreed to speak on the condition of anonymity for fear of repercussions or because they weren't authorized to speak publicly said they believe the bill, as it's currently written, would ban the company. ... "The language is unambiguous," said a former automotive policy advisor and lobbyist who was consulted about the bill.

{snip}

[mahatmakanejeeves]

1. Mercedes Benz vehicles built in Alabama may be banned in the U.S.

Mercedes Benz vehicles built in Alabama may be banned in the U.S.

Alabama Public Radio | By Pat Duggins
Published May 29, 2026 at 3:37 PM CDT

{snip picture}

Multiple published reports say legislation making its way through Congress could ban the sale of Mercedes Benz cars and trucks in the U.S., possibly including those built at the European automaker's North American plant in Tuscaloosa. Members of the House and Senate are considering a measure called the Motor Vehicle Modernization Act of 2026, which bans companies with Chinese ownership.

That could mean a problem for Mercedes-Benz, whose biggest owner is BAIC, a Chinese automaker which holds a nearly ten percent stake in the German based car company. Possibly worse for Alabama, CNBC reports that Mercedes could potentially be barred from manufacturing vehicles in the United States as well as selling them.

The impact of the Mercedes Benz plant in Alabama is huge. The website Autos Drive America says the North American factory generates $1.5 billion dollars a year for the state economy, as well as providing nearly sixty thousand jobs. The proposed legislation would block companies with direct or indirect ties with nations considered “foreign adversaries” including China, Russia, and North Korea, from building or selling cars in the United States.

The Alabama plant has reportedly produced more than five million vehicles since 1997. A separate facility in South Carolina facility has produced close to a half million more since 2006.

{snip}

[3Hotdogs]

2. The fuck of it all is that some of the Chinese cars are better than anything we can buy here.

[OldBaldy1701E]

3. Bingo!

And, rather than compete, which was supposed to be a guiding principle of capitalism, they decided to cheat and remove the competition.

Not surprising. In any way.

[MichMan]

4. What Chinese manufactured vehicles are better than anything else currently sold in the US ?

As an auto enthusiast for decades, I would be interested in knowing.

[the_liberal_grandpa]

5. I'd rather own a Chinese BYD electric car than any Tesla

American built crappy cars like the Chevy Vega and Ford Pinto in the 70's but new Japanese cars
like Datsun, Toyota and Honda started showing up here and became super poplular as the are today.
The competition was good for American cars and they started building them better to compete.

Chinese cars like BYD would do the same thing for our crappy electric American car market.

Canada is bringing them in slowly because they are affordable.

We should do the same.