Senate committee advances bill threatening Mercedes-Benz U.S. sales

The Motor Vehicle Modernization Act of 2026 aims to secure national infrastructure by restricting Chinese-linked auto manufacturers, citing fears that connected vehicle technology could harvest sensitive data. However, the bill sets a 15% Chinese ownership cap that ensnares Mercedes-Benz, as its two largest shareholders—state-owned BAIC and Geely founder Li Shufu—collectively hold nearly 20% of the company.

Chairman Ted Cruz, R-Texas, acknowledged the legislation requires revisions, noting that Congress has no intention of banning a manufacturer that employs over 10,000 Americans and maintains major assembly plants in Alabama and South Carolina. While bill sponsor Sen. Bernie Moreno, R-Ohio, argued the measure is vital to protecting the U.S. industrial base, Cruz suggested the proposal may be influenced by corporate interests, specifically accusing General Motors of backing the provision to gain a competitive edge over Cadillac’s rivals.

Under current language, affected firms would have until 2030 to comply with the ownership limits or seek a federal waiver. Representatives for General Motors and Mercedes-Benz did not immediately respond to requests for comment on the markup.