U.S. Moves to Ban Sales of Automakers with Over 15% Chinese Ownership—Mercedes-Benz Potentially Affected

The U.S. Congress is currently reviewing a draft bill titled the "Connected Vehicle Safety Act of 2026," jointly introduced by Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin. The proposed legislation would ban connected vehicles controlled by—or with technological ties to—"adversarial nations" from entering the U.S. market starting January 1, 2027. Under the bill, vehicles manufactured by companies in which investors from designated countries collectively hold more than 15% of equity would be deemed potential national security threats. Germany’s Mercedes-Benz Group could face a sales ban in the U.S. market, as BAIC Group and Geely Holding together hold nearly 20% of its shares. The bill requires affected automakers to demonstrate to the U.S. Department of Commerce that their vehicle technology is entirely decoupled from shareholders in "adversarial nations" and poses no national security risk. Failure to pass this review would not only prohibit sales but also subject each non-compliant vehicle to a civil penalty of at least $1.5 million. The bill remains in draft form and has not yet become law.