Mercedes Safe From U.S. Ownership Crackdown, Senator Says

A proposed U.S. Senate bill aimed at restricting automakers with significant Chinese ownership would not spell the end for Mercedes-Benz in America, according to one of the lawmakers behind the measure. Republican Senator Bernie Moreno indicated that banning the German brand is not the goal, even though Chinese investors collectively hold roughly 20% of its shares.

The legislation would set a 15% threshold for Chinese ownership, a bar Mercedes currently exceeds through stakes held by Tenaciou3 Prospect Investment Limited and BAIC Group. Because those holdings are passive and the companies play no role in product planning or daily operations, lawmakers appear willing to let Mercedes remain in the market provided it reduces that figure. Moreno acknowledged the difficulty of that task, noting concern about whether the company can get under the threshold without harming itself.

The bill has drawn rare bipartisan support, with Senator Elissa Slotkin reportedly saying 99 senators back it. The lone opponent, Senator Rand Paul, cited the potential impact on Mercedes as his reason for objecting, and suggested he would support the bill if the Mercedes provisions were removed. The measure would also affect other brands with substantial Chinese ownership, including Aston Martin and Lotus, both of which could face major restructuring or lose U.S. market access entirely.

For Mercedes, the stakes are considerable given the size of the American market, and the company would likely need to pursue creative restructuring to comply if the bill becomes law.