Congress Bill Could Ban Mercedes-Benz from U.S. Market Over Chinese Ownership
A bipartisan House bill, the Motor Vehicle Modernization Act of 2026, would bar automakers with any direct or indirect foreign-adversary government ownership from importing, manufacturing, or selling new vehicles in the U.S. If enacted, Mercedes-Benz could be excluded due to its ownership by BAIC (state-owned, ~9.98%) and Li Shufu’s Geely stake (~9.69%), totaling about 19.7%. The language is disputed and the bill has no Senate companion yet; exemptions exist for some China-backed firms but not for government-owned ownership. The legislation also intersects with other bills on connected-vehicle tech and could affect Volvo and other China-linked brands. The rule would take effect for five years after enactment.
