Mercedes-Benz could be barred from selling or manufacturing vehicles in the United States under a new bipartisan bill in Congress.
The proposed Motor Vehicle Modernization Act of 2026 seeks to restrict automakers with ties to Chinese government-linked ownership.
Concerns arise from Mercedes-Benz's shareholder structure, with its largest individual shareholder being BAIC, a Chinese state-owned automaker, holding a 9.98% stake.
Chinese billionaire Li Shufu also holds a 9.69% stake through his investment firm Tenaciou3 Prospect Investment, combining for roughly 19.67% of Mercedes-Benz Group AG.
The bill proposes to prohibit affected automakers from importing, selling, or manufacturing vehicles in the US for five years, with exemptions for companies that have produced passenger vehicles in the US for at least five years prior to January 1, 2026.
However, such exemptions may not apply if a company has direct or indirect ownership ties to a foreign-adversary government.
