Why Mercedes-Benz is at risk of US market ban under new Congress bill | Explained

US bill targeting Chinese-made cars could also impact Mercedes-Benz market in America

The Motor Vehicle Modernization Act of 2026 would ban automakers with indirect ties to Chinese state ownership from the U.S. market for five years; Mercedes-Benz risks inclusion because BAIC, its largest shareholder, is a Chinese state-owned entity. For procurement and supply chain teams, the bill's 15% ownership threshold sets a precedent that could extend to Volvo, Lotus, and others — any fleet or manufacturing strategy with European-Chinese co-owned brands needs a contingency review.