Benz, Held Back by Chinese Stake, Faces Risk of Expulsion from the U.S.

*This content was translated by AI.

As a bill moves through the U.S. Congress to restrict the operations of automakers linked to Chinese capital in the United States, German automaker Mercedes-Benz faces the risk of being expelled from the U.S. market.

The "Motor Vehicle Modernization Act of 2026," introduced by Representative Brett Guthrie (Republican Party, Kentucky), chair of the House Energy and Commerce Committee, aims to completely ban the import, sale, and production of vehicles in the United States by automakers that hold direct or indirect stakes from hostile governments such as China, Russia, and North Korea. If the bill passes, the affected companies would be restricted from operating in the U.S. market for five years following the enactment of the law.

The issue lies in Mercedes-Benz's shareholding structure. Mercedes-Benz's single largest shareholder is Beijing Automotive Group (BAIC), a Chinese state-owned automaker, which holds a 9.98% stake. Additionally, Li Shufu, founder and chairman of Chinese automaker Geely Automobile, has secured a 9.69% stake through an investment company, bringing the total stake held by Chinese capital to 19.67%.

The bill includes an exemption clause for companies that have been producing passenger vehicles in the United States for at least five years prior to the bill's enactment. Mercedes-Benz has established a large-scale manufacturing base, producing over 5 million vehicles at its Alabama plant since 1997. However, the bill's detailed provisions explicitly exclude exemptions for cases involving "direct or indirect stakes by hostile governments," leading analysts to conclude that Mercedes-Benz, which holds a stake through the state-owned enterprise BAIC, is highly likely to be excluded from relief measures.

Industry experts warn that if Mercedes-Benz is actually included in the regulatory scope, unintended side effects such as job losses and deteriorating profits in the United States could occur. Furthermore, similar provisions limiting foreign hostile capital to 15% are being discussed in other bills introduced separately in the Senate and House, such as the "Connected Vehicle Security Act of 2026." Consequently, other automaker brands with Chinese stakes, including Volvo (where Geely Automobile is a major shareholder), Lotus, and Karma Automotive, are expected to fall directly under the bill's impact.

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*This content was translated by AI.