Mercedes-Benz May Be Shut Out of U.S. Market Under Bill Aimed at Chinese Automaker Ownership New bipartisan legislation, the Motor Vehicle Modernization Act of 2026, aims to prohibit automakers with equity interests from foreign adversary governments, such as China, from operating in the U.S. Mercedes-Benz could be affected because its largest shareholder is the Chinese state-owned automaker BAIC. Sources suggest the bill’s current wording may ban Mercedes-Benz from importing, selling, or manufacturing vehicles in the U.S.

• A new bipartisan bill, the Motor Vehicle Modernization Act of 2026, could ban Mercedes-Benz from the U.S. auto market.
• The bill targets automakers with direct or indirect equity interests from foreign adversary governments, including China.
• Mercedes-Benz’s largest shareholder is BAIC, a Chinese state-owned automaker, with a 9.98% stake.
• Sources familiar with the legislation believe the bill, as written, would ban Mercedes-Benz operations in the U.S.
• Exemptions in the bill for companies manufacturing in the U.S. for at least five years do not apply to companies with foreign adversary government equity interests.
• Combined Chinese ownership through BAIC and Li Shufu’s firm amounts to 19.67% of Mercedes-Benz Group AG.
• Other automakers with Chinese ownership, like Volvo, may also be impacted by similar ownership stipulations in related legislation.
• Mercedes-Benz has significant U.S. operations, including two assembly plants and over 10,000 employees.