Mercedes may face a ban from entering the United States due to its Chinese owners.
China’s state-owned BAIC is now Mercedes’ largest single shareholder, holding 9.98 percent of the automaker’s shares. Nearly half as much is owned by a company controlled by Geely’s chairman. Meanwhile, the Americans are working on regulations that could exclude from the automotive market companies in which “a hostile foreign government holds direct or indirect capital interests.” Volvo, owned by Geely, could face a similar issue.
Mercedes Facing Potential Ban on Car Sales in the United States
Despite ongoing political disputes between Republicans and Democrats, both parties agree that Chinese automakers should be prevented from entering the United States. A relevant law is being drafted as part of the Motor Vehicle Modernization Act of 2026, aiming to explicitly ban the import or even production of vehicles intended for sale in the U.S. if their owners include a “government of an enemy state.”
The situation is delicate because Mercedes has invested heavily in the U.S. market, with two factories there (in Alabama and South Carolina) and nearly 11,100 employees (source). In terms of sales, Mercedes’ performance in the United States is better than in its home country of Germany, and it also drives demand for larger or more expensive models. CNBC heard that “it’s not about Mercedes,” although experts consulted described the language of the regulations as “clear” [and unfavorable to the German brand]. Literally interpreted, the new law prohibits the company from operating in the U.S.
Mercedes’ manufacturing plant in Alabama (c) Mercedes USA
China, Russia, and North Korea are listed among the countries hostile to the United States. Exclusions apply to companies supported by “adversaries” but not owned by them. A minimum of five years of car production within the United States prior to 2026 is also considered an advantage. However, direct or indirect ownership stakes of more than 15 percent constitute a red flag for a company. The situation at Mercedes is complicated, with the state-owned BAIC holding 9.98 percent, and another 9.69 percent owned by Geely’s founder, Li Shufu, who is not affiliated with the Chinese government.
The United States has previously banned the sale of cars connected to the internet and operating under Chinese software on its territory. The regulations take effect for model years 2027 and later. Chinese control electronics are prohibited starting with model year 2030. Volvo has received a temporary permit to continue operating despite the first ban.
Article Rating
Reader Ratings
[Total: 4 votes Average: 5]
Don’t miss new content — CLICK and FOLLOW Elektrowoz.pl on Google News. You might also be interested in the following ads: