US Senate bill could ban Mercedes Benz US sales

A bipartisan U.S. Senate bill aimed at protecting the American auto industry from perceived national security risks linked to China could threaten the future of Mercedes-Benz in the United States. The legislation, which advanced through the Senate Commerce Committee on July 22, 2026, would prohibit the sale of connected vehicles by any automaker with more than 15% ownership by Chinese entities. Mercedes-Benz, with nearly 20% of its ownership linked to Chinese stakeholders, exceeds that threshold.

The bill, introduced in April by Democratic Senator Elissa Slotkin of Michigan and Republican Senator Bernie Moreno of Ohio, seeks to codify and expand upon a regulation imposed by the Biden administration in January 2025. That rule, known as the Connected Vehicle Rule, already prohibits sales or imports of connected vehicles from China, Russia, and other designated countries, with phased bans on vehicles with Chinese software and components beginning in 2027 and 2029. The new Senate proposal shifts the focus from a vehicle's origin to its corporate ownership structure, driven by concerns that Chinese-linked ownership could provide a pathway for sensitive data collected by modern...