UNITED STATES, July 28 (Nationwide Times) — A Senate bill aimed at Chinese-owned automakers could also sweep up Mercedes-Benz, raising a new question for U.S. car buyers: which brands would be allowed to sell connected vehicles in the American market if the measure becomes law?
The concern comes from a proposed 15% ownership threshold. Under the legislation approved by the Senate Commerce Committee, automakers with more than 15% ownership by Chinese entities could face restrictions on sales of connected vehicles in the United States. Senators said the goal is to limit Chinese influence over vehicles that can collect data, connect to mobile networks and communicate with outside systems.
Why Mercedes-Benz is being mentioned
Mercedes-Benz is not a Chinese company. But lawmakers and recent reporting say Chinese investors hold nearly 20% of the German automaker through stakes tied to BAIC and Geely founder Li Shufu. That puts Mercedes above the bill’s 15% line.
During the committee markup, Sen. Ted Cruz, the Texas Republican who chairs the Commerce Committee, warned that the bill could unintentionally bar Mercedes-Benz from selling vehicles in the U.S. if the language is not changed. Sen. Bernie Moreno, an Ohio Republican involved in the effort, said Mercedes-Benz would have until 2030 to comply with the ownership limit and could seek a waiver.
Mercedes has also been trying to change the proposal. Bloomberg reported that the company has been pushing to soften the measure, and one report said it wanted the Chinese ownership cap raised to 25%.
What counts as a connected vehicle?
In this debate, “connected vehicles” means cars and trucks that can exchange data over the internet, cellular networks or other wireless systems. Those features can power navigation, emergency calls, software updates, remote diagnostics and driver-assist tools. Supporters of tighter limits say those systems create national security risks if they are tied to foreign adversaries.
That is why the bill focuses on who owns the automaker, not just where the car is assembled.
Is Mercedes-Benz actually banned now?
No. The bill is not law yet.
The Senate Commerce Committee has approved the legislation, but it still needs more congressional action before it could reach the president. A related House measure has also moved through committee, but the final shape of either proposal remains unclear.
That matters because the details are still in flux. Reports have used different names for the proposal, including the Connected Vehicle Security Act and the Motor Vehicle Modernization Act of 2026. The exact wording also appears to be shifting, including how broadly it would cover sales, imports or manufacturing.
What Mercedes has said
Mercedes-Benz chief executive Ola Källenius said in May that he was “very confident that we will be able to handle that situation” if the legislation moves forward. In remarks carried by CNBC, he suggested the company would be able to deal with the issue if lawmakers eventually passed a bill.
A report from Asia Business Daily said Mercedes also said it is “committed to ensuring that no legislation will adversely affect our operations.”
Why U.S. manufacturing may matter
One report noted that Mercedes has a manufacturing plant in Tuscaloosa, Alabama, which could become relevant if lawmakers decide to carve out exemptions for companies that build in the United States. But the scope of any exemption has not been made clear in the material reviewed so far.
For now, the practical effect is uncertainty. If the Senate language survives and becomes law, Mercedes-Benz could have to choose between changing its ownership structure, seeking a waiver, or losing access to the U.S. market for some connected vehicles.
That is why the bill is drawing attention well beyond Washington: it could affect what kinds of cars Americans can buy, and which global automakers can keep selling them.
