Mercedes-Benz may face restrictions in the U.S. auto market due to bipartisan legislation currently under consideration in Congress. The Motor Vehicle Modernization Act of 2026 aims to limit foreign adversary involvement in the U.S. auto market, which could include Mercedes-Benz unless changes are made or its largest shareholder divests its stake.
The bill would prohibit automakers with any equity interest from a foreign adversary government, such as China, from manufacturing, selling, or importing vehicles in the U.S. Mercedes-Benz's largest shareholder is the state-owned Chinese company BAIC, which holds a 9.98% share. Sources familiar with the legislation indicated that the current wording could lead to a ban on Mercedes-Benz's operations in the U.S.
The legislation is sponsored by House Energy and Commerce Committee Chairman Brett Guthrie and currently lacks a Senate counterpart. It includes exemptions for companies that have manufactured vehicles in the U.S. for at least five years prior to January 1, 2026, but these exemptions do not apply to firms with foreign adversary ownership.
The bill lists China, Russia, and North Korea as foreign adversaries. If enacted, it would prevent companies with such ownership from operating in the U.S. for five years. The implications of the bill for Mercedes-Benz have not been previously reported.
Daniel Kelly, press secretary for the Energy and Commerce Committee, confirmed the details of the legislation but did not comment on its potential impact on specific companies. A spokesperson for Mercedes-Benz declined to comment on pending legislation.
Mercedes-Benz's second-largest shareholder is Chinese billionaire Li Shufu, who holds a 9.69% stake through his investment firm. Together, BAIC and Shufu own 19.67% of Mercedes-Benz Group AG.
Another piece of legislation, the Connected Vehicle Security Act of 2026, also includes a 15% ownership stipulation that could affect other automakers with Chinese ownership. The largest U.S. plant for Mercedes-Benz is located in Tuscaloosa, Alabama, where it has produced over 4.5 million vehicles since 1997.
The company's lobbying efforts have been limited in recent years, although it participates in trade associations that advocate for the auto industry. John Bozzella, CEO of The Alliance for Automotive Innovation, expressed concerns about China's strategy in global automotive manufacturing and emphasized the need for careful policy development.
