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Mercedes-Benz could be barred from manufacturing and selling vehicles in the U.S. under new legislation targeting Chinese ownership in the auto industry, according to CNBC.
Named the Motor Vehicle Modernization Act of 2026, the legislation would block any automaker from importing, selling, or manufacturing vehicles for sale in the U.S. if a foreign-adversary government holds "any direct or indirect equity interest" in that company. The legislation is sponsored by House Energy and Commerce Committee Chairman Brett Guthrie, a Republican from Kentucky, and is currently a House-only initiative with no Senate companion.
BAIC — formerly known as the Beijing Automotive Industrial Corp. and owned by the Chinese government — holds a 9.98% stake in Mercedes-Benz, making it the automaker's single largest individual shareholder, according to CNBC. An additional 9.69% of Mercedes-Benz shares is controlled through Tenaciou3 Prospect Investment, the vehicle used by Li Shufu — the Chinese billionaire who founded and chairs Geely — to hold his position in the company. Together, Li Shufu and BAIC account for a 19.67% ownership stake in Mercedes-Benz Group AG.
Among those CNBC spoke with who have knowledge of the legislation, two said the bill in its current form would result in a ban on the company, while others pointed to ambiguities in its language that could produce the same outcome depending on interpretation. "The language is unambiguous," a former automotive policy advisor and lobbyist who was consulted about the bill told CNBC.
